Cabinet has approved the East African Crude Oil Pipeline (EACOP) Bill 2021.
Now, the Bill awaits tabling before Parliament by Energy and Mineral Development Minister, Ruth Nakabirwa,
According to the cabinet decisions list released by the Minister of ICT and National Guidance, Dr Chris Baryomunsi, yesterday, the Bill define the legal and regulatory framework for the EACOP project in Uganda.
“The Bill ensure lawful implementation of the EACOP project in Uganda, reassure confidence to investors of government’s commitment to fulfill its obligations under the Host Government Agreement and give confidence in the Tanzanian government to equally finalise their enabling legislation in a timely manner”.
The announcement to draft and table the Bill before Parliament was first made by former Energy Minister, Dr Mary Gorreti Kitutu, at the signing of the EACOP deal by the stakeholders that include Uganda, Tanzania, Total E&P and CNOOC at State House, Entebbe, on April 11, 2021after negotiations to sign the deal were concluded.
Total E&P Limited is the majority shareholder in the deal with 72 per cent followed by Uganda with 15 per cent and CNOOC comes third with 8 per cent while Tanzania holds 5 per cent.
All those will be involved in the construction of EACOP.
The 1,445km heated EACOP will begin from Hoima district in Uganda up to the port of Tanga in Tanzania.
The deal will see over 3.5 barrels of oil flowing out of the ground.