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EACOP gets four contractors

HOIMA – Four international companies that were contracted by government to implement the East African Crude Oil Pipeline [EACOP] have been unveiled to the local business community in the Albertine Graben

The companies include China Petroleum Pipeline Engineering LTD (CPP), BOLLORE Transporters and logistic Uganda, Schneider Electric France Ltd and Engineering, Procurement, construction, Management and commissioning [EPCMC Worley Europe LTD].

The companies, according to John Bosco Habumugisha, the Deputy Managing Director EACOP, are going to implement the construction of the pipeline on the side of Uganda.

The implementers of EACOP projects are the Governments of Uganda and Tanzania (represented by Uganda National Oil Company (UNOC) and Tanzania Petroleum Development Corporation (TPDC) respectively), Total Energies and China National Offshore Oil Corporation (CNOOC)

In Uganda, the pipeline, 296km long, will traverse 10 districts and 25 sub-counties. In Tanzania, the pipeline, 1,147km long, will traverse 8 regions and 25 districts.  The construction of the proposed crude oil export pipeline will cost Shs12 trillion and the pipeline will transport 400,000 barrels per day.

A total of 5,300 hectares of land will be needed for the construction and operation of the pipeline, which means that around 13,000 households will lose land.

Under this project, Uganda and Tanzania are going to invest 30 percent while oil companies are to invest 70 percent of the total cost of the project. The project period is three years.

According to Bainomugisha, the Companies have started works on the project adding construction of over 90 houses for the project affected pension who opted for relocation kicked off recently.

He noted that they decided to contract non-Ugandan companies to implement the project after they realized that the local Ugandan companies lacked capacity.

He noted that they have unveiled the companies to local business communities to discuss how they can partners with them and benefit from the project opportunities.

He noted the oil and gas sector needs skilled people and standards and advised that since many Ugandans lack capacity they should make partnerships with the skilled and qualifying companies to supply the industry.

He also underscored a need for people from Bunyoro to start registering on the National Supplier database and keep updated with the oil and gas information if they are to benefit from the sector.

He noted that though recruitment has not started, the EACOP project is going to create thousands of jobs for both skilled and unskilled labor.

However, he said that not all Ugandans will work in the oil and gas industry and advised that it is time for citizens to find ways to get involved and tap into the opportunities.

You will not pick food from the local market and take it to the oil gas contractors, so it is important that communities work together with entities that already meet the standards and work as groups as joint ventures.

David Bishop Director for EPCMC Worley Europe LTD said that they are committed to partnering with the local communities to supply goods and services during the implementation of the EACOP project.

He also promised that his company will offer employment opportunities as a way of promoting local content and called on the public to support the project.

Pong Yuchonge local content engineers for CPP, said that the company is going to abide by National Content Regulations. He promised that local suppliers will be given first priority adding that transportation, civil works, coordinators, human resources, and catering among others have been spared for local people.

Fred Musinguzi of Muka Investment Ltd. and the chairman of Bunyoro Business Club explained that the lack of information and coordination office in the region is hindering business communities from engaging in oil and gas.

He called for the establishment of liaison offices in the region to help the local suppliers to get the right information at the right time to be able to benefit from the sectors.

https://thecooperator.news/oil-companies-ready-to-invest-10-billion-dollars-in-oil-and-gas-sector/

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