Standard Bank CEO Supports East Africa Pipeline Despite Environmental Concerns

Standard Bank CEO Sim Tshabalala defends the East African Crude Oil Pipeline project, saying its benefits outweigh environmental risks. The bank has funded the $5 billion project, which has faced opposition from environmental groups. Tshabalala believes that Africa has a right to economic development and that people need energy and income. The project is expected to be finished in H1 2024.

Standard Bank Group Ltd. CEO Sim Tshabalala has defended the East African Crude Oil Pipeline (EACOP) project, stating that its benefits outweigh the environmental risks. The $5 billion project, which aims to transport landlocked crude from Uganda to the coast for export, has faced opposition from environmental groups and activists. Tshabalala, speaking at a conference in Johannesburg, emphasized that Africa has a right to economic development and that people need energy and income.

The EACOP project, operated by TotalEnergies, is expected to be completed in the first half of 2024. It has faced scrutiny from environmental groups and activists who have scrutinized potential lenders. The project has received funding from Standard Bank, which hired an independent adviser in 2021 to decide on its involvement. The bank announced its decision to proceed with funding three years later, stating that the project is "below $100 million" in cost.

Tshabalala’s position reflects a broader debate between African governments seeking to develop their oil and gas resources and groups in the West that advocate for more sustainable energy sources. The project aims to support Africa’s growth by providing a mix of renewable and transitional projects. TotalEnergies holds a 62% stake in the pipeline, with state-owned Tanzania Petroleum Development Corp. and Uganda National Oil Co. each owning 15%, and CNOOC Ltd. holding the remainder.

The EACOP project, which includes six pumping stations and a heat tracing system, is designed to transport oil from Tilenga in Uganda to the port of Tanga in Tanzania. The route of the pipeline was designed to minimize environmental impact, with careful attention paid to watercourses and horizontal drilling used for sensitive areas. The project is expected to generate 0.8 million tons of CO2 per year at plateau production, or around 13.5 million tons of CO2 over its 20-year operating life.

Despite the environmental concerns, Tshabalala maintains that the project is worth the investment. "Yes, there are environmental costs, but these are being minimized, and the net effect is that the project is worth it, now and into the future," he said.

References:
[1] https://totalenergies.com/company/projects/oil/tilenga-and-eacop-projects-acting-transparently-uganda-tanzania
[2] https://www.bloomberg.com/news/articles/2025-09-09/standard-bank-says-net-effect-of-east-africa-pipeline-worth-it