Uganda expects all pledged funding for oil pipeline by end of November

(Bloomberg) — Uganda said it expects all potential lenders for the country’s planned $4 billion crude export pipeline to make their commitments by the end of November, smoothing the way to a targeted production start-up in early 2025.

Negotiations continue with dozens of financial institutions keen to be involved the 1,443-kilometer (897-mile) conduit from Uganda’s oil fields to Tanzania’s port of Tanga, Peter Muliisa, chief legal and corporate affairs officer for Uganda National Oil Co., said Monday. Just a few of 66 lenders that expressed an interest in helping to finance the project didn’t return the necessary papers.

The East African Crude Oil Export Pipeline, which will have a daily capacity of 216,000 barrels a day, will be funded on a 40% to 60% equity-debt ratio, according to UNOC, a partner in the project. The link is designed to move land-locked Uganda’s oil to international markets.

The Islamic Development Bank became the first lender to commit funding to the project when it approved $100 million for EACOP at the weekend.

TotalEnergies SE is leading development of the project with a 62% stake in the cross-border pipeline. UNOC and Tanzania Petroleum Development Corp. each have a 15% interest, and the rest is owned by China’s Cnooc Ltd.