In a landmark development for East Africa’s energy landscape, January 2025 marked the successful close of a $3.55 billion financing package for the East African Crude Oil Pipeline (EACOP). This milestone arrives after months of uncertainty in 2024, during which the project faced financing delays and opposition from some international lenders. The new funds have reignited momentum, accelerating welding operations and construction work along the pipeline route.
For Uganda, Tanzania, and the broader East African region, this isn’t just about crude oil—this is about infrastructure, industrialization, regional integration, and long-term transformation. For companies like Medic Holdings Limited, the announcement is equally significant. As a petroleum logistics and marketing company with operations across East Africa and a procurement hub in Dubai (Meedek PTL FZE), Medic Holdings sees this moment as an opportunity to deepen its role in the continent’s energy supply chain.
This blog explores what the $3.55 billion financing means for the EACOP project, outlines the implications for construction and economic development, and highlights how Medic Holdings is positioned to support and benefit from this progress.
The East African Crude Oil Pipeline: A Recap
The EACOP is a 1,443-kilometer pipeline designed to transport crude oil from Hoima in western Uganda to the port of Tanga in Tanzania. It is the longest heated crude oil pipeline in the world, engineered to carry up to 216,000 barrels per day of waxy Ugandan crude that requires heating to remain fluid during transport.
Key Project Players:
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TotalEnergies (France) – Lead developer (62% shareholding)
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China National Offshore Oil Corporation (CNOOC) – Partner (8%)
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Uganda National Oil Company (UNOC) – 15%
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Tanzania Petroleum Development Corporation (TPDC) – 15%
Strategic Goals of EACOP:
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Facilitate Uganda’s first oil exports
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Unlock economic value for both Uganda and Tanzania
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Promote regional energy trade and logistics
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Stimulate local enterprise and job creation
Since the Final Investment Decision (FID) in 2022, which unlocked more than $10 billion in total investments across the upstream and midstream oil projects, EACOP has become a flagship symbol of East Africa’s aspirations for energy independence and industrial development.
January 2025: Financing Secured, Work Accelerates
The Numbers
In January 2025, it was officially confirmed that $3.55 billion in funding had been secured to advance construction. The funds were raised through a combination of:
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Multilateral development banks
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Export credit agencies (ECAs)
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Sovereign wealth funds
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Islamic financing institutions (via Sukuk)
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Chinese development banks (Exim Bank of China and ICBC)
This financing breakthrough follows prolonged delays in late 2024, when several European lenders withdrew due to ESG and reputational concerns.
What’s Covered by the $3.55 Billion?
The funds are earmarked for:
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Accelerating pipe welding and laying
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Completing storage depots and pumping stations
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Procuring advanced heating and insulation technologies
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Supporting environmental mitigation and social development programs
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Expanding local supplier contracts
Pipeline Welding and Construction in Full Swing
With the financing in place, work across Uganda and Tanzania has surged ahead.
Welding Operations
As of March 2025:
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Over 250 kilometers of pipe segments have been welded
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Welded sections are being X-ray scanned and tested on-site
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Joint coating and trenching follow the welding crews in sequence
Construction of Key Infrastructure
In both Uganda and Tanzania, the following milestones are underway:
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6 Pumping Stations under construction
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Oil Storage Terminal at Tanga port being expanded
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Control centers, roads, and worker camps fully operational
More than 8,000 workers are active on the project, with a commitment to increasing local labor to 60% by the end of 2025.
Impact on Uganda and Tanzania’s Economies
1. Job Creation and Local Industry Support
The EACOP project has already created tens of thousands of jobs directly and indirectly. With the construction ramp-up:
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Local civil works companies, fuel suppliers, and logistics providers are gaining significant business
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Ugandan and Tanzanian SMEs are now part of the global oil value chain
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A major push is underway to train welders, engineers, and technicians
2. Infrastructure Improvements
The project has necessitated:
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Upgraded road networks in rural areas
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New power lines to support heating stations
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Improved communication infrastructure
These have long-term spillover benefits for other sectors like agriculture and tourism.
3. Fiscal Revenues and Foreign Direct Investment (FDI)
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Uganda expects oil revenues to boost GDP by 1–2% annually after first oil
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Tanzania gains from transit fees, infrastructure leasing, and port activity
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EACOP is stimulating further FDI in supporting industries
Medic Holdings Limited: Strategically Positioned to Support EACOP
At Medic Holdings, we view the EACOP breakthrough as a powerful endorsement of East Africa’s economic resilience and a signal for increased local participation. Our ability to support this massive project is anchored in three key strengths:
1. Regional Logistics Expertise
With a robust fleet and a presence across Uganda, Kenya, Tanzania, and Rwanda, Medic Holdings is ready to:
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Supply bulk petroleum products to contractors
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Offer fuel storage and distribution services
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Ensure reliable supply chains for remote and active construction zones
2. Procurement and Financing from Dubai (Meedek PTL FZE)
Our entity in the Umm Al Quwain Free Trade Zone offers:
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Access to global suppliers
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Procurement of safety equipment, fuel additives, pipes, and machinery
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Flexible international financing options
This international footprint gives us an edge in supporting multi-country projects like EACOP.
3. Commitment to HSSE Standards
Safety and environmental responsibility are at the heart of our operations. As EACOP emphasizes high Health, Safety, Security, and Environment (HSSE) standards, Medic Holdings brings:
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Experience in fuel handling compliance
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Trained drivers and handlers
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Investments in low-emission vehicle fleets
Beyond Oil: EACOP as a Catalyst for Regional Integration
EACOP is not just an oil pipeline—it is a vehicle for deeper East African integration.
1. Cross-Border Collaboration
The project has created a framework for closer cooperation between:
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Uganda and Tanzania in infrastructure planning
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Harmonization of tax and regulatory frameworks
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Joint environmental monitoring
2. Technology Transfer and Skills Development
Local engineers and welders are receiving hands-on experience with advanced pipeline technologies—skills that can later be applied in other sectors.
3. Industrialization Push
As the pipeline moves oil to the coast, refineries, storage depots, and petrochemical plants are being planned. This will:
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Reduce dependence on fuel imports
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Lower fuel prices over time
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Enable manufacturing of related products (bitumen, plastics, fertilizers)
What’s Next for EACOP in 2025 and Beyond?
Q2–Q4 2025:
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Complete welding of 50%+ of the pipeline
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Finalize land compensation in remaining sections
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Begin hydrotesting and commissioning of completed segments
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Expand support infrastructure (security stations, monitoring systems)
2026:
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Full-scale testing of the pipeline system
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Port operations at Tanga become fully integrated
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First export shipment expected by late 2026 or early 2027
Challenges Still Ahead
Despite the progress, several risks remain:
1. Environmental Scrutiny
Ongoing monitoring is required to manage:
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Wildlife corridors
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Protected forest and wetland crossings
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Waste disposal and soil restoration
2. Geopolitical Risk
As a major infrastructure project, EACOP must navigate:
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Regional elections
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Currency volatility
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Global crude oil price fluctuations
3. Social License to Operate
Continued community engagement is key. Compensation, relocation, and local job quotas must be managed transparently.
Medic Holdings’ Call to Action: Let’s Build the Future Together
At Medic Holdings, we are ready to serve the evolving energy and infrastructure needs of East Africa. With decades of experience in petroleum marketing and logistics, and an eye on diversification into commodity trading, we view projects like EACOP as catalysts for regional transformation.
We invite:
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International developers to partner with us for local fuel supply and fleet support
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Ugandan and Tanzanian firms to join our value chain
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Government agencies to collaborate on building sustainable, safe, and efficient energy infrastructure
Conclusion: A Defining Chapter for East Africa
The $3.55 billion financing breakthrough in January 2025 isn’t just a green light for EACOP—it’s a signal that East Africa can lead its own development path, marshal international partnerships, and execute complex, multi-country infrastructure at scale.
Medic Holdings is proud to play a role in this journey, supporting construction with logistics, safety, fuel, and procurement services. The pipeline may be physical, but its impact is deeply symbolic—it carries not just oil, but hope, opportunity, and economic independence for millions.
Contact Medic Holdings Limited
📍 Uganda Headquarters
📞 +256 782 097098 | +256 702 097098
📧 [email protected]
📍 Meedek PTL FZE – Dubai Office (Umm Al Quwain FTZ, UAE)
📦 Fuel Logistics | Global Procurement | Infrastructure Support
🌐 Let’s move East Africa forward—one barrel, one partnership, one innovation at a time.