EACOP Tests the Limits of Africa's Oil Development Strategy
A new legal challenge in the UK has revived opposition to the East African Crude Oil Pipeline (EACOP), highlighting the growing importance of social and environmental acceptance for major energy projects. For Uganda, the pipeline is essential to exporting its oil reserves and building a domestic petroleum industry. The project's. . .
A new legal challenge in the UK has revived opposition to the East African Crude Oil Pipeline (EACOP), highlighting the growing importance of social and environmental acceptance for major energy projects. For Uganda, the pipeline is essential to exporting its oil reserves and building a domestic petroleum industry. The project's future will depend not only on engineering and financing, but also on its ability to address concerns over land rights, environmental impacts, and investor confidence. A new legal challenge filed in the United Kingdom has reignited debate over the East African Crude Oil Pipeline (EACOP), the project designed to transport Ugandan crude oil to Tanzania's Indian Ocean coast. On Monday, July 6, a group of Ugandan farmers asked the UK High Court to require EACOP Ltd. —a company incorporated in England and Wales—to comply with protections provided under Uganda's constitutional, environmental, and climate laws. The case highlights a challenge that has followed the project from the outset. Today, large energy infrastructure projects must do more than prove they are technically feasible and financially viable. They must also earn the trust of affected communities, investors, regulators, and international partners. A Cornerstone of Uganda's Oil StrategyEACOP is central to Uganda's plan to develop its petroleum sector. The country has discovered commercially viable oil reserves in the Albertine Graben in western Uganda, but because it is landlocked, it needs an export route to bring crude to international markets. The 1,443-kilometer pipeline will connect Uganda's oil fields to the Tanzanian port of Tanga and is expected to transport up to 230,000 barrels of crude per day at peak capacity. The project is led by TotalEnergies, which holds a 62% stake, alongside the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC), and China National Offshore Oil Corporation (CNOOC). For Kampala, the objective is to transform its oil discoveries from geological potential into a driver of economic growth. The project is expected to support the development of a domestic petroleum industry and generate new public revenue. Achieving that goal, however, increasingly depends on a factor that has become critical for major energy projects worldwide: public acceptance. Land Rights Remain at the Center of the DebateThe first source of tension concerns communities living along the pipeline route. Project opponents estimate that more than 100,000 people could be affected by land acquisition required for construction. They have questioned compensation arrangements and warned about the economic consequences of losing farmland that supports rural livelihoods. TotalEnergies says it has implemented extensive support measures for affected households. According to the company, 98% of eligible households have signed compensation agreements, 97% have received compensation payments, and 98% of families requiring relocation have moved into new homes. In response to continued criticism, TotalEnergies commissioned an independent assessment in 2024 by SouthBridge, the advisory firm founded by former Beninese Prime Minister Lionel Zinsou. The review covers land acquisition procedures, public consultations, compensation, resettlement, and grievance mechanisms. A Symbol of Africa's Energy DebateBeyond land issues, EACOP has become a symbol of the broader debate over the role of fossil fuels in Africa's economic development. Environmental organizations argue that the pipeline could affect sensitive ecosystems along its route and contribute to greenhouse gas emissions linked to future oil production. In 2022, the Climate Accountability Institute (CAI) estimated that emissions associated with the project would exceed the combined annual emissions of Uganda and Tanzania. The debate reflects a broader international trend. While many African governments argue they should be able to develop their natural resources to support economic growth, major energy projects are now judged not only on their economic benefits but also on their environmental and social impacts. As a result, EACOP has become one of the clearest examples of the tension between economic development, energy access, and global climate objectives. Financing Has Become Another BattlegroundThe project has also faced growing pressure from the financial sector. In 2021, a coalition of 263 organizations from 49 countries urged banks to withdraw support for EACOP, citing environmental and social risks. Several international financial institutions subsequently stepped back from the project. Standard Bank suspended its involvement, while BNP Paribas, Société Générale, Crédit Agricole, Credit Suisse, Barclays, and ANZ all said they would not provide financing. The episode underscored how financing for large energy infrastructure projects now depends not only on expected returns but also on banks' environmental and social risk policies and the rising expectations of investors. Despite those withdrawals, EACOP has continued to move forward with financial backing from other partners, particularly African and Chinese institutions. A Test Case for Africa's Next Generation of Energy ProjectsEACOP has grown beyond a bilateral project between Uganda and Tanzania. It now illustrates the new constraints facing major energy infrastructure developments across emerging economies. For its backers, the pipeline is a strategic investment that will allow Uganda to monetize its oil resources and strengthen its position in regional and global energy markets. For critics, it remains a fossil fuel project whose social and environmental costs deserve greater scrutiny. Its future will therefore depend on several factors, including the outcome of ongoing legal challenges, the management of land-related issues, continued access to financing, and the confidence of communities, investors, and other stakeholders. EACOP remains one of East Africa's most significant energy projects. But its trajectory also reflects a broader shift in the energy sector: today, developing natural resources is no longer enough. Success increasingly depends on demonstrating that projects can create economic value while meeting the social, environmental, and financial standards expected by governments, investors, and the public. Olivier de Souza