TotalEnergies financiers beware: EACOP is eating up money, nature and livelihoods
A new analysis shows that the developers of the East African Crude Oil Pipeline, led by France’s TotalEnergies, are being forced to self-finance the project almost entirely. The analysis, part of a new Finance Risk Updatefrom a coalition of African and International civil society organisations, shows that the companies have abandoned plans to raise 60% of the project’s growing costs from bank loans, and are now on the hook for almost 90% of the costs themselves.
A new analysis shows that the developers of the East African Crude Oil Pipeline, led by France’s TotalEnergies, are being forced to self-finance the project almost entirely. The analysis, part of a new Finance Risk Updatefrom a coalition of African and International civil society organisations, shows that the companies have abandoned plans to raise 60% of the project’s growing costs from bank loans, and are now on the hook for almost 90% of the costs themselves.
The EACOP is under construction from Hoima in Uganda to the port of Tanga in Tanzania. While a recent “first tranche” of lending for the project was recently finalised, the analysis of EACOP Ltd.’s recent financial disclosures indicates this amounts to only $755 million in total. This means the project companies now need to finance the whole remainder of the project’s $5.6 billion total price tag themselves. This means Total and its partners (The China National Offshore Energy Corporation (CNOOC), and the national oil companies of Uganda and Tanzania) look set to sink more than three times their originally planned contribution of $1.4 billion into the project.
Mounting Costs for Total and Partners
The EACOP has been rejected by almost all of Total’s biggest bankers, based on its extreme risks to communities and the region’s rich nature. Over 40 commercial banks have made clear they will not finance the project directly. As a result of the decision to self-finance the project, Total and its bankers and investors are far more exposed to the accelerating risks to communities, nature and climate being caused by the oil pipeline than was previously thought.
Environmental and Human Impacts Mount
The pipeline has been describedby the project companies as over 60% complete. However, analysis of satellite imagery by EarthInsight showsless than 40% of the pipeline has been laid. The same analysis also shows roads cleared for the pipeline reaching the Victoria Nile riverbank, signalling an imminent, high-risk crossing of this river in an area that overlaps with protected wetlands and the Murchison Falls National Park. Well pads which will feed the pipeline are being constructed in the National Park, with tragic consequences for local people as vibrations from drilling rigs cause elephants to move to surrounding communities. The elephants are destroying cropland, and have killed at least five peoplein the area in 2023 and 2024.
The new Finance Risk Update, which details these impacts for financiers exposed to Total and CNOOC, is the sixth in a series which has been produced by a coalition of civil society groups led by BankTrack. It is endorsed by Africa Institute for Energy Governance (AFIEGO), Both ENDS, EarthInsight, Environment Governance Institute EGI-Uganda, Inclusive Development International, Just Share and Reclaim Finance.
Bondholders Now Exposed
As the project becomes more expensive for Total, its financiers become more exposed to its risks. Several banks including Citi, BBVA, Deutsche Bank, JPMorgan Chase, MUFG, Royal Bank of Canada, Société Générale, and Wells Fargo underwrote bonds for TotalEnergies in March and June 2025 – money which may fund the construction of the EACOP, despite the banks’ commitments not to finance the project directly. The briefing warns that any additional bond issuances by the company could be critical sources of financing for EACOP.
More information
- The EACOP Finance Risk Update can be downloaded here.
- Read the full briefing.
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