FIRST OIL: EACOP hosts Bank of Uganda Governor, Judiciary heads

Bank of Uganda Governor Michael Atingi-Ego underscored the East African Crude Oil Pipeline's (EACOP) vital importance to Uganda's macroeconomic outlook during a visit to Pump Station One in Hoima District. Atingi-Ego stated that government revenue projections and the nation's balance of payments are intrinsically linked to the successful completion of the country's oil and gas projects, particularly the EACOP pipeline.

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If you look at the 2026/27 budget and all the projections we have in our balance of payments, they are all hinged on what you guys are doing here. I came to confirm that this is true because, in the unlikely event that it is not, we have to go back to the drawing board. I am very, very impressed.

"If you look at the 2026/27 budget and all the projections we have in our balance of payments, they are all hinged on what you guys are doing here," Atingi-Ego remarked. He emphasized his need to confirm the project's progress firsthand, noting that any deviation from the plan would necessitate a complete reassessment of national economic strategies. The Governor expressed significant satisfaction with what he observed.

During the delegation's tour, which included Chief Justice Dr. Flavian Zeija, EACOP's Deputy Managing Director, John Bosco Habumugisha, provided an update on the project's status. He reported that EACOP has reached 91 percent overall completion, slightly behind the planned 94 percent. Habumugisha attributed the delay to external factors, including the conflict in the Middle East, which disrupted cargo shipments, and the recent Ebola outbreak, which affected international travel and personnel availability. He expressed optimism that the country's Ebola-free status would ease these constraints.

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I am very, very much impressed that I don’t see any white face here. These are all Ugandans, and we really thank the Head of State for building local capacity in this area. Thank you for all that, and God bless you all.

Atingi-Ego also commended EACOP for its commitment to local content development. He observed that the workforce at Pump Station One was predominantly Ugandan, a development he credited to the Head of State's focus on building local capacity. "I am very, very much impressed that I don’t see any white face here. These are all Ugandans, and we really thank the Head of State for building local capacity in this area," he stated, highlighting the long-term value this creates for the nation.

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As we speak, the entire pipeline is generally welded. We should have been at 94 percent, but there are many factors. The conflict in the Middle East affected many things. Some of our cargo was in Dubai, so we lost time because of that conflict and had to divert some of our cargo to Oman. Then recently, Ebola also affected us because flights from some countries could not come. I think we are now in a better state with the announcement that the country is Ebola-free.

Habumugisha further detailed that the entire 1,443-kilometer pipeline has been welded and that environmental restoration efforts are proceeding concurrently with construction. He assured that the land would be returned to its original condition post-completion. The Deputy Managing Director also acknowledged the extensive legal and commercial groundwork, including intergovernmental and shareholder agreements, that paved the way for the pipeline's development, positioning it as crucial infrastructure for Uganda's crude oil exports.

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This journey has involved a lot of legal work to define the oil and gas industry. The pipeline is an enabler infrastructure that allows Uganda to export its crude oil to the international market while supporting the country’s broader oil and gas value chain.