China Just Offered Surprising Investment To Uganda That Challenges The West.

The Western countries made promises to Uganda to invest in the construction and development of the East African crude oil pipeline, one of the largest pipelines in the region with a budget of $5 billion. Uganda was led to believe that the United States would handle all the investments, allowing Uganda’s crude oil to be transported to Tanzania, which has access to the Indian Ocean. This would enable the crude oil to reach global markets and bring significant economic benefits to Uganda. However, Uganda took actions that displeased the Western countries, who had invested in the project with the intention of leveraging it later. As anticipated, the Western countries announced the suspension of their investment, effectively halting the construction of the pipeline and dashing Uganda’s hopes for economic growth. It was at this point that China stepped forward to offer help and assistance to Uganda, surprising the West. However, the situation is more complex than it appears. Why did the West suspend their investment? How vital is this pipeline, and why is China supporting Uganda? To find answers to these questions and gain a deeper understanding of the dynamics between Uganda, China, and Western countries, I encourage you to watch this video. It will challenge your perceptions and shed light on the intricacies of these relationships. Let’s delve into the East African crude oil pipeline, also known as EACOP. This ambitious project has been in progress since 2013. A symbolic gesture was made in 2017 with the laying of the foundation stone. The primary objective of the EACOP is to transport crude oil from Uganda’s Tanga and Kingfisher oil fields to the port of Tanga in Tanzania, situated on the Indian Ocean. From there, the crude oil can be supplied to markets worldwide. Uganda is venturing into oil development, particularly with Tanga, operated by Total Energies, and Kingfisher, under the auspices of the China National Offshore Oil Corporation. In terms of ownership, Total Energies claims the lion’s share at 65%, Uganda’s National Oil Company holds 15%, Tanzania secures another 15%, while KUK takes home 5%. This ambitious project carries a price tag of $5 billion. Interestingly, 24 banks from the West opted to step back from the project, but Standard Bank and the Industrial and Commercial Bank of China stepped in to fill the void. Once completed, this monumental endeavor will set a new record as the world’s longest electrically heated crude oil pipeline. In March 2016, the EACOP had its starting point planned in the Busara subcounty district at Lake Albert in Uganda’s western region.