Sapiens: News about news 25/11/2023

EACOP: Details of World’s Longest

Heated Crude Oil Pipeline Revealed
November 23, 2023

The entire 1443 km length will provide heat and real-time satellite
surveillance to prevent leaks.

Details of what will be the world’s longest heated crude oil pipeline, carrying oil from
Uganda to the Indian Ocean coast of Tanzania, have been revealed, showing how a
cocoon of electrical and fibre-optic cables along its entire 1443 km length will provide
heat and real-time satellite surveillance to prevent leaks.

The East Africa Crude Oil Pipeline (EACOP), due to cost around US$4 billion, is the
keystone of Uganda’s booming oil and gas sector development, scheduled to pump its
first crude oil in 2025.

“With its extensive fibre-optic network allowing online connectivity, EACOP promises to
be one of the world’s smartest and safest bulk pipelines with real-time monitoring along
its entire length via satellite,” said Dozith Abeinomugisha, Director in-charge of
Midstream developments at the Petroleum Authority of Uganda (PAU).
Safety staff will be able to detect any pressure change indicative of a leak, sabotage or
pilfering within seconds and isolate the relevant section of pipe to keep environmental
damage and commercial loss to a minimum.

Both the PAU and EACOP’s holding company will have real-time monitoring centres at
their respective offices to receive immediate updates via satellite uplink. This means that
monitoring is not dependent on local mobile phone or radio networks, guaranteeing
greater reliability.

The remote data monitoring and transmission technology known SCADA (Supervisory
Control and Data Acquisition) works even though the pipe will be buried between 1 and 3

1 00005/2023
 Sapiens: News about news 25/11/2023

metres underground, providing safety staff with a complete, live picture of the entire
pipeline.

With EACOP planners aware of the importance of mitigating climate change, renewable
energy will be used as much as possible for all pumping, heating, monitoring, and storing.
The Ugandan section will be entirely carbon neutral with 80MW of solar and hydro
providing all the power needed while work is continuing on the Tanzanian side to develop
similar levels of renewable capacity.

The design and construction of EACOP, which began in 2018, has been one of the
greatest challenges of African infrastructure engineering in recent history.
First, engineers had the challenge of how to pump crude oil that at surface temperature is
not in liquid form and therefore resistant to flow, but more in a waxy state reminiscent of
shoe polish.

Not uncommon in the oil sector, where so called `sweet’ crude of a fine quality such as
Uganda’s solidifies after being pumped up from high-pressure, high-temperature reserves
deep underground, the normal solution is to heat pumping infrastructure to ensure it
remains liquid.
But the colossal 1443 km length of the EACOP route, more than twice that of the current
longest heated crude oil pipeline, which stretches 660 km across Gujarat state in India,
posed an additional headache.

In order for flow to be maintained, the EACOP has to be kept at a temperature of at least
50 °C. Testing showed that if the crude oil is flowing at high rates under high pressure
initial heating at the pipe head to 80 °C will be enough to keep it moving, as the rate of
cooling is so slow it remains above the 50 °C threshold along its entire 1443km.
But if flow rates and pressure come down it will cool more as it moves, threatening to
solidify and block the flow. To get round this, two heating stations have been added to the
design, capable of boosting the crude oil temperature back towards 80 °C to ensure strong
flow.

To keep it above 50 °C heating cables will run the entire length of the pipe using a
technology known as Long Line Heat Tracing (LLHT) which works on a similar principle
as a kettle element, using resistance to generate heat when an electric current passes
through a specially chosen high resistance filament.
With temperature so critical, EACOP’s conventional 24 in. wide carbon steel pipe had to
be carefully redesigned for heat and monitoring.

Uganda’s crude oil being sweet (with no corrosive impurities such as sulphur) means that
the pipeline does not have to be lined on the inside as such high-grade crude oil has
minimum corrosion effect on steel. So, for protection the pipe need only be lined on the
outside.

In addition to a standard Fusion Bonded Epoxy (FBE) resin protective coating 400-600
µm thick on the outside, engineers have added a much thicker 70 mm `smart’ layer of
insulation made from polyurethane, with special channels down which electrical heating
element LLHT cables and fibre-optic lines needed for SCADA will be fitted.

2 00005/2023
 Sapiens: News about news 25/11/2023

The entire pipe will then be covered with an outer, hard, protective coat of 5-7 mm
protective High-Density Polyethylene (HDPE), meaning EACOP will effectively have
four layers: inner steel, epoxy resin, polyurethane and finally polyethylene.
So sophisticated is this layering that a coating factory is currently being built in Tanzania
so that each 18 m length of pipe, already being manufactured in China, is sheathed
correctly before it is sent out to be laid in the ground.

With safety a top priority for EACOP, high grade steel and welding between each 18 m
length, tested at the time of laying and rejected if any faults are found, means the risk of
internal leakage across the 25 year life of the pipe is reduced to almost nothing.
But to make sure, the SCADA system, constantly monitored by both safety officers and
computer tracking algorithms finetuned through the latest machine learning technology,
will pick up the slightest change in pressure indicative of a leak. The sensors can also
detect seismic activity in case of earthquakes and warn operators to turn off the flow if
there is a risk of a dangerous tremor.

Block valves are placed every few kilometres along the pipeline meaning that if a leak is
spotted, the affected section can be isolated immediately and only a short section of pipe
risks being drained.

In other African oil producing nations, pilfering and sabotage have a history of causing
leaks. The plan to bury EACOP mitigates this risk considerably, according to planners. In
addition, SCADA can detect any surface interference along the right of way should
anyone try to dig down to the pipe.

For most of the route, burying is possible as the terrain was chosen so as not to be too
rocky. This means that a 30 m wide corridor above the pipe will be demarcated and kept
clear of any digging, quarrying or other activities that disturb the ground.
Livestock will still be able to graze as normal and some crops planted so the disruption to
rural communities will be kept to a minimum.

Scouting for the EACOP route began in 2018, and after two years of consultation and
surveying, it was decided the pipeline would arc for 296 km southeast through Uganda
from the collection and pumping station at Kabaale in Hoima district, before crossing
1147 km in Tanzania to its Indian Ocean coast at Chongoleani village near the port of
Tanga.

The route was chosen to minimise disruption to the local population and the environment,
but this met a challenge close to the coastline where a steep slope in the terrain could
potentially cause surges in pressure as the crude oil flows downhill at high angles. Two
pressure reduction stations were added to the design to maintain the pressure for the
project’s high safety standards.

“Local farmers and residents were consulted in both Uganda and Tanzania where the
pipeline cuts across their land. Public information campaigns were launched to offer
compensation to legitimate claimants for loss of land, assets such as buildings and grazing
rights”, adds Mr. Ali Ssekatawa, Director for Legal and Corporate Affairs at PAU.

3 00005/2023
 Sapiens: News about news 25/11/2023

In Uganda the number of people affected is 3660 and in Tanzania, 9513. To date 90% in
Uganda have accepted compensation packages, including 177 who have opted for new
homes resettling them away from the pipeline rather than cash.

Negotiations continue but in the case of a failure to agree between EACOP planners and
residents, both countries have a legal regimes under which land can be acquired by
government through a transparent process of compulsory acquisition and compensation.
With the two already-licensed production areas covering the Tilenga and Kingfisher
projects, both located in western Uganda around Lake Albert, scheduled to peak at 230
000 bpd production, an export pipeline is essential to maximise earnings for Uganda’s
hydrocarbon assets.

The country is planning to build its own refinery to deal with local demand for petrol and
other consumer products, one that will use up 60 000 bpd, meaning at the current planned
peak EACOP will pump 170 000 bpd.
To allow for new production capacity from yet to be developed exploration areas in
Uganda and changes in the levels of refinery consumption, EACOP has been designed
with a maximum flow rate of 246 000 bpd.

This allows Uganda to build in added capacity over the next few years confident that the
longest, heated, smart crude oil pipeline in the world can keep revenues coming in to
finance economic upliftment and progress in the African nation.
“Uganda can be proud of its place at the cutting edge of pipeline technology with EACOP
showing how committed the country is to develop its oil and gas assets responsibly,
openly and profitably. Uganda will not only benefit through earnings from the sale of
crude oil, but from the engineering and technical skills transfer driven by the EACOP
project,” says Mr. Abeinomugisha.

Work is already advanced on the pumping stations, work camps and storage facilities
along the EACOP route as well as the coating plant. The first 100 km of pipe (5600
sections each 18 m in length, all loaded onto a single bulk carrier) has been manufactured
in China and is expected to arrive by ship in the Tanzanian hub port of Dar es Salaam
within weeks. After coating and welding the first sections of pipe are due to be laid
midway through next year.

Multiple Choice Questions:

1. What is the East Africa Crude Oil Pipeline (EACOP) designed to transport?
A) Natural Gas
B) Crude Oil
C) Refined Petroleum
D) Water
2. What is the total length of the EACOP, making it the world's longest heated crude oil
pipeline?
A) 660 km
B) 1147 km

4 00005/2023
 Sapiens: News about news 25/11/2023

C) 1443 km
D) 246,000 bpd
3. How is the EACOP pipeline kept at a temperature of at least 50 °C?
A) Underground heaters
B) Solar panels
C) Heating stations and cables
D) Insulation layers
4. What technology is used for remote data monitoring and transmission along the EACOP
pipeline?
A) Fiber optics
B) Satellite uplink
C) SCADA
D) Long Line Heat Tracing (LLHT)
5. What is the primary purpose of the SCADA system along the EACOP pipeline?
A) Detect seismic activity
B) Monitor environmental temperature
C) Detect leaks and pressure changes
D) Ensure renewable energy use
6. How is the EACOP pipeline protected against corrosion due to high-grade crude oil?
A) Inner lining with polyurethane
B) Fusion Bonded Epoxy (FBE) resin coating
C) Outer layer of High-Density Polyethylene (HDPE)
D) All of the above
7. What renewable energy sources are utilized for pumping, heating, monitoring, and storing
along the EACOP pipeline?
A) Solar and hydro
B) Wind and geothermal
C) Biomass and nuclear
D) Coal and natural gas
8. How is the risk of internal leakage reduced along the EACOP pipeline during its 25-year
lifespan?
A) Regular inspections by safety officers
B) High-grade steel and welding
C) Continuous monitoring through SCADA
D) All of the above
9. Why were two pressure reduction stations added to the EACOP design close to the
coastline?
A) To maintain pressure for safety standards
B) To increase the flow rate of crude oil
C) To reduce energy consumption
D) To accommodate seismic activity
10. How many people in Uganda and Tanzania are affected by the EACOP pipeline, and what
is the compensation offered for land loss?
A) Uganda: 9513, Tanzania: 3660, Cash compensation only
B) Uganda: 3660, Tanzania: 9513, New homes or cash compensation
C) Uganda: 177, Tanzania: 90%, Cash compensation only
D) Uganda: 90%, Tanzania: 177, New homes or cash compensation
11. What is the maximum flow rate of the EACOP pipeline designed to accommodate?
A) 60,000 bpd
B) 170,000 bpd
C) 230,000 bpd
D) 246,000 bpd

5 00005/2023
 Sapiens: News about news 25/11/2023

12. Apart from earning revenue, what additional benefit does Uganda expect from the EACOP
project?
A) Increased crude oil prices
B) Engineering and technical skills transfer
C) Reduced environmental impact
D) Establishment of new refineries

1. Explain the significance of the East Africa Crude Oil Pipeline (EACOP) in the context of
Uganda's oil and gas sector development.
Answer: The EACOP is a crucial component of Uganda's oil and gas sector development,
serving as the world's longest heated crude oil pipeline. Costing approximately US$4 billion, it is
a keystone project designed to transport crude oil from Uganda to the Indian Ocean coast of
Tanzania. Its completion is scheduled for 2025 and is expected to significantly boost Uganda's
economic prospects by maximizing earnings from its hydrocarbon assets. With the capacity to
pump 246,000 barrels per day (bpd), the pipeline is essential for transporting oil from licensed
production areas, such as the Tilenga and Kingfisher projects, to the international market.
2. Describe the technological features implemented in the EACOP for real-time monitoring
and prevention of leaks.
Answer: The EACOP incorporates advanced technological features for real-time monitoring and
prevention of leaks. A cocoon of electrical and fiber-optic cables spans the entire 1443 km length,
providing heat and enabling real-time satellite surveillance. The Supervisory Control and Data
Acquisition (SCADA) system plays a pivotal role in this, allowing safety staff to detect pressure
changes indicative of leaks, sabotage, or pilfering within seconds. The system can isolate the
relevant pipeline section to minimize environmental damage and commercial losses.
Additionally, the Long Line Heat Tracing (LLHT) technology, using heating cables, ensures the
pipeline is kept at a minimum temperature of 50 °C to prevent the crude oil from solidifying.
3. Discuss the environmental considerations taken into account during the design and
construction of the EACOP.
Answer: EACOP's design and construction prioritize environmental considerations, reflecting a
commitment to responsible and sustainable development. The pipeline incorporates renewable
energy sources, utilizing 80MW of solar and hydro power for pumping, heating, monitoring, and
storing. The Ugandan section is entirely carbon neutral, and efforts are underway in Tanzania to
develop similar levels of renewable capacity. The pipeline's sophisticated layering, including
Fusion Bonded Epoxy (FBE) resin protective coating, polyurethane insulation, and High-Density
Polyethylene (HDPE) outer coating, not only ensures safety but also minimizes environmental
impact. The chosen route, where possible, allows for burial, reducing disruption to rural
communities and minimizing the environmental footprint.
4. Examine the engineering challenges faced during the design and construction of the
EACOP, particularly regarding the characteristics of the crude oil it transports.
Answer: The EACOP faced significant engineering challenges, particularly related to the
characteristics of the crude oil it transports. The crude oil from Uganda is considered "sweet,"
meaning it has minimal corrosive impurities like sulfur. However, the oil solidifies at surface
temperature, posing challenges for flow. To address this, the pipeline employs heating
infrastructure to maintain the crude oil in a liquid state. The colossal 1443 km length of the
pipeline required innovative solutions, including two heating stations capable of boosting the
crude oil temperature back towards 80 °C to ensure continuous flow. Additionally, the use of
Long Line Heat Tracing (LLHT) technology and a carefully redesigned pipeline structure were
crucial in overcoming these engineering hurdles.

6 00005/2023
 Sapiens: News about news 25/11/2023

5. Explain how the EACOP addresses the potential risks of leaks, sabotage, and pilfering,
emphasizing the role of the SCADA system.
Answer: EACOP employs a comprehensive approach to address the potential risks of leaks,
sabotage, and pilfering. The SCADA system, or Supervisory Control and Data Acquisition, plays
a central role in this strategy. Safety staff can detect pressure changes, indicative of potential
issues, within seconds and isolate the relevant pipeline section. The SCADA system provides
real-time monitoring along the entire pipeline length, independent of local mobile phone or radio
networks, ensuring greater reliability. In addition to detecting leaks, SCADA can identify surface
interference along the right of way, offering an advanced warning system in case of any attempts
to tamper with the pipeline.
6. Elaborate on the measures taken to minimize the impact on local populations and the
environment during the construction and operation of the EACOP.
Answer: The construction and operation of the EACOP prioritize minimizing impact on local
populations and the environment. The chosen route, determined after consultation and surveying,
aims to minimize disruption to local populations and the environment. For most of the route,
burying the pipeline is possible, ensuring a 30 m wide corridor above the pipe remains clear of
any activities that disturb the ground. Livestock can still graze, and some crops can be planted,
reducing disruption to rural communities. Public information campaigns were launched, and
compensation packages were offered to those affected, including options for new homes to
mitigate the impact on land loss.
7. Describe the protective measures implemented in the design of the EACOP pipeline to
prevent corrosion and ensure its safety over its 25-year lifespan.
Answer: The EACOP pipeline incorporates multiple protective measures to prevent corrosion
and ensure safety over its 25-year lifespan. Given Uganda's "sweet" crude oil, the pipeline does
not require inner lining due to its minimal corrosive impact on steel. Instead, the pipeline features
a Fusion Bonded Epoxy (FBE) resin protective coating 400-600 µm thick on the outside.
Additionally, a 70 mm "smart" layer of insulation made from polyurethane, housing electrical
heating element cables and fiber-optic lines, is added. The entire structure is then covered with an
outer layer of 5-7 mm protective High-Density Polyethylene (HDPE). This multi-layered design,
along with high-grade steel and rigorous welding standards, minimizes the risk of internal
leakage.
8. Discuss the economic benefits that Uganda anticipates from the completion of the EACOP,
considering both short-term and long-term impacts.
Answer: Uganda anticipates significant economic benefits from the completion of the EACOP,
both in the short-term and long-term. In the short term, the pipeline is crucial for maximizing
earnings from hydrocarbon assets, allowing Uganda to export its crude oil to the international
market. This revenue can be used to finance economic upliftment and progress within the
country. In the long term, the EACOP is expected to contribute to skill transfer and technological
advancements, positioning Uganda at the cutting edge of pipeline technology. The pipeline's
capacity to accommodate future production increases ensures sustained economic benefits as
Uganda develops new exploration areas and adapts to changes in refinery consumption.
9. Evaluate the role of public consultation and compensation strategies in mitigating the
impact of the EACOP on local communities in Uganda and Tanzania.
Answer: Public consultation and compensation strategies have played a vital role in mitigating
the impact of the EACOP on local communities in Uganda and Tanzania. The route selection
involved two years of consultation and surveying, taking into account the concerns of local
farmers and residents. Public information campaigns were launched to inform affected
individuals about compensation packages, including options for new homes for those who opted
for resettlement. In Uganda, 90% of those affected have accepted compensation packages,
showcasing the effectiveness of these strategies in addressing the concerns of local communities.
In cases of disagreement, both countries have legal regimes for transparent compulsory
acquisition and compensation processes.

7 00005/2023
 Sapiens: News about news 25/11/2023

10. Examine the future capacity planning incorporated into the design of the EACOP and its
implications for Uganda's oil and gas sector.
Answer: The design of the EACOP incorporates future capacity planning to accommodate
Uganda's growing oil and gas sector. With a maximum flow rate of 246,000 bpd, the pipeline
exceeds the planned peak production capacity from licensed areas. This allows for added capacity
as Uganda develops new exploration areas and experiences changes in refinery consumption. The
pipeline's flexibility to handle increased production ensures that Uganda can adapt to evolving
market conditions and maximize the long-term economic benefits of its hydrocarbon assets. The
EACOP, as a strategic infrastructure project, positions Uganda to be responsive to the dynamic
nature of the oil and gas industry, contributing to sustained economic development.

1. Keystone:
Definition: A central, crucial, or foundational element that plays a vital role in the development
or success of a system or project.
Context: The East Africa Crude Oil Pipeline (EACOP) is considered the keystone of Uganda's
booming oil and gas sector development.
2. Cocoon:
Definition: A protective covering or envelope that surrounds or encases something, providing
insulation or security.
Context: The EACOP features a cocoon of electrical and fiber-optic cables along its entire length
for heat and surveillance.
3. Pilfering:
Definition: The act of stealing small quantities or amounts, often done discreetly or in small
increments.
Context: Safety staff on the EACOP are equipped to detect pilfering, preventing unauthorized
siphoning of crude oil.
4. Seismic Activity:
Definition: Vibrations or tremors in the Earth's crust, often caused by the movement of tectonic
plates, resulting in earthquakes.
Context: The SCADA system on the EACOP can detect seismic activity and trigger safety
measures in case of earthquakes.
5. Surveillance:
Definition: The close observation or monitoring of a person, group, or area, especially for the
purpose of gathering information.
Context: The EACOP utilizes real-time satellite surveillance to prevent leaks and ensure the
pipeline's safety.
6. Corrosion:
Definition: The gradual deterioration or destruction of a material, usually a metal, as a result of
chemical reactions with its environment.
Context: Due to Uganda's "sweet" crude oil, the EACOP pipeline does not require inner lining to
prevent corrosion.
7. Demarcated:
Definition: Clearly defined or marked out, often indicating boundaries or limits.
Context: A 30 m wide corridor above the EACOP pipeline is demarcated to keep it clear of any
activities that disturb the ground.
8. Compulsory Acquisition:
Definition: The legal authority to force the sale of property or land by the government, usually
for public infrastructure projects.

8 00005/2023
 Sapiens: News about news 25/11/2023

Context: In cases of disagreement, both Uganda and Tanzania have legal regimes for compulsory
acquisition and compensation related to the EACOP.
9. Upliftment:
Definition: The act of raising something to a higher position or level; in the context of the article,
it refers to economic development.
Context: The revenue generated from the EACOP is expected to contribute to economic
upliftment in Uganda.
10. Fusion Bonded Epoxy (FBE):
Definition: A protective coating applied to steel surfaces through a process that involves heating
and melting epoxy powder.
Context: The EACOP pipeline is coated with Fusion Bonded Epoxy (FBE) to protect it from
corrosion.
11. Machine Learning:
Definition: A subset of artificial intelligence that involves the development of algorithms and
statistical models that enable computers to perform tasks without explicit programming.
Context: The SCADA system on the EACOP pipeline uses the latest machine learning
technology for constant monitoring and detection of anomalies.
12. Hydrocarbon:
Definition: A compound consisting of hydrogen and carbon atoms, often found in fossil fuels
such as oil, gas, and coal.
Context: Uganda's hydrocarbon assets, including crude oil, are a significant focus of development
and revenue generation through the EACOP.

What ways do we learn from the above ?

The article provides valuable insights into various aspects, including
technological advancements, engineering challenges, environmental
considerations, and economic impacts related to the East Africa Crude Oil
Pipeline (EACOP). Here are several ways we can learn from the article:
1. Pipeline Technology:
Gain understanding about the innovative technologies employed in the design and construction of
the EACOP, such as the use of electrical and fiber-optic cables, SCADA systems, and Long Line
Heat Tracing (LLHT).
2. Engineering Challenges:
Learn about the engineering challenges associated with transporting crude oil over long distances,
especially when dealing with oil in a waxy state and the need for heating infrastructure to
maintain flow.
3. Environmental Considerations:
Understand the environmental considerations in the pipeline's design, such as the use of
renewable energy sources, sophisticated layering for protection, and the effort to minimize
disruption to local populations and ecosystems.
4. Safety Measures:
Explore the safety measures implemented in the EACOP, including real-time monitoring,
detection of pressure changes, and the SCADA system's role in identifying potential leaks,
sabotage, or pilfering.
5. Economic Impacts:
Gain insights into the economic benefits and implications for Uganda, including revenue
generation, economic upliftment, and the long-term planning for accommodating increased oil
production.
6. Community Engagement:

9 00005/2023
 Sapiens: News about news 25/11/2023

Learn about the importance of public consultation, compensation strategies, and legal regimes in
mitigating the impact of the pipeline on local communities in Uganda and Tanzania.
7. Future Capacity Planning:
Understand the significance of incorporating future capacity planning into the design, allowing
the pipeline to adapt to changes in refinery consumption and accommodate increased production.
8. Corrosion Prevention Techniques:
Explore the methods employed to prevent corrosion, considering the characteristics of the crude
oil transported, such as the use of Fusion Bonded Epoxy (FBE) coating and multi-layered
protection.
9. Global Infrastructure Challenges:
o Recognize the complexity and scale of global infrastructure projects, as demonstrated by the
EACOP, and the need for careful planning and innovative solutions in overcoming challenges.
10. Sustainable Development:
Gain insights into how the project aligns with principles of sustainable development by
incorporating renewable energy sources, minimizing environmental impact, and addressing the
concerns of local communities.
11. Technological Transfer:
Understand the potential for technological transfer and skill development in Uganda, as the
EACOP project positions the country at the cutting edge of pipeline technology.
12. Global Energy Landscape:
Reflect on the role of large-scale energy projects like the EACOP in the global energy landscape,
contributing to the transportation of natural resources and economic development in the region.

The long-term success or failure of the East Africa Crude Oil Pipeline (EACOP) will depend on
various factors, including economic, environmental, geopolitical, and operational considerations.
Here's an analysis of the potential outcomes:

Chances of Success:
1. Economic Impact:
If global oil prices remain stable or increase, the EACOP has the potential to contribute
significantly to Uganda's economic growth by maximizing earnings from its hydrocarbon assets.
2. Technological Resilience:
The innovative technologies employed in the pipeline, such as the SCADA system, heating
infrastructure, and protective coatings, demonstrate a commitment to state-of-the-art engineering,
which could enhance the pipeline's resilience and success.
3. Environmental Sustainability:
The pipeline's commitment to renewable energy sources and environmental protection measures
may contribute to its long-term success by aligning with global trends towards sustainable and
responsible resource development.
4. Community Engagement:
The proactive approach to public consultation, compensation strategies, and legal frameworks for
land acquisition may foster positive relationships with local communities, minimizing potential
disruptions and conflicts.
5. Global Energy Demand:
The long-term success of the pipeline may be positively influenced by sustained global demand
for energy resources, especially if the project proves to be a reliable and efficient means of
transporting crude oil.

10 00005/2023
 Sapiens: News about news 25/11/2023

Chances of Failure:
1. Volatility in Oil Prices:
If global oil prices experience significant volatility or a prolonged downturn, the economic
viability of the EACOP may be compromised, affecting the expected returns on investment and
the overall success of the project.
2. Geopolitical Risks:
Geopolitical factors, including regional conflicts or changes in political stability, could pose risks
to the operational continuity and success of the pipeline, especially considering the cross-border
nature of the project.
3. Environmental Concerns:
Any failure to adequately address environmental concerns, such as potential leaks or damages to
ecosystems, could lead to regulatory challenges, public backlash, and reputational damage,
affecting the pipeline's long-term success.
4. Operational Challenges:
The sheer length of the pipeline and the complexity of its design may present ongoing operational
challenges. Any unforeseen technical issues, maintenance difficulties, or failures in the
implemented technologies could impact the pipeline's success.
5. Market Dynamics:
Changes in the global energy landscape, such as a shift towards renewable energy sources or a
decrease in demand for crude oil, may affect the long-term success of the pipeline if it becomes
less economically competitive.
In conclusion, while the EACOP holds substantial potential for contributing to Uganda's
economic development, the success or failure in the long run will be contingent on the effective
management of economic, environmental, geopolitical, and operational factors. Continuous
adaptation to changing market conditions, adherence to sustainability practices, and robust risk
management strategies will be crucial for ensuring the sustained success of the pipeline over its
operational lifespan.

11 00005/2023