Recently, CPPE and East African Crude Oil Pipeline Co., Ltd. signed a general contract for the East African Crude Oil Pipeline Project (East African Crude Oil Pipeline Project).

The starting point of the EACOP project is located in Kabal, Hoima Region, Uganda, passing through Uganda and Tanzania, and the end point is located in Tanga Port, Tanjongoleani Peninsula, Tanzania. The pipeline has a total length of 1443 kilometers, a pipe diameter of 610mm, and a design pressure of 9.3Mpa. It is transported by buried laying and external thermal insulation and electric heat tracing. A total of 6 pumping stations, 2 pressure reducing stations, 82 valve chambers and 20 electric heat tracing stations are set up on the whole line. The project construction period is 24 months, commissioning and commissioning is 3 months, and the warranty period is 24 months.

The main terms of the contract are as follows:

1. Project amount: USD 806 million.

2. Settlement method: advance payment + progress payment.

3. Project performance location: Uganda, Tanzania.

4. Performance period: The construction period of the project is 24 months, the commissioning and commissioning period is 3 months, and the warranty period is 24 months.

5. Dispute resolution method: friendly negotiation/arbitration.

6. Conditions and time for entry into force: April 21, 2023.

China Petroleum Engineering said that the normal performance of the project contract will have a certain positive impact on the company's operating income and total profit in the next three years, which is conducive to the further consolidation and expansion of the company's oil and gas storage and transportation project construction business in Uganda and Tanzania.

East Africa Crude Oil Pipeline Co., Ltd. (EACOP) is jointly established by Total Energy Uganda Exploration and Production Company (TEPU), CNOOC Uganda Company, Uganda National Oil Company and Tanzania Petroleum Development Company. Its main business includes the development and management of Uganda crude oil export pipelines.Editor/Ma Xue