By Gloria Sebikari
“Diversifying into the oil and gas sector has skyrocketed our revenue by over 200% and transformed our global partnerships,” said Mr. Derek Natumanya, Chief Operating Officer at ICS Engineering and Environment Company. “This strategic shift has empowered us to invest in technology, staff development, and improved assets, fueling our continued growth.”
ICS is among the many Ugandan companies tapped to provide engineering support services for the East African Crude Oil Pipeline (EACOP), a monumental project that will transport Uganda’s crude oil from the Albertine Graben to Tanzania’s Port of Tanga on the Indian Ocean.
With the development of the US $4.5 billion EACOP well underway in Uganda and Tanzania, local Ugandan companies like ICS are playing a critical role in the Engineering, Procurement, Construction Management, and Commissioning (EPCmC) phase, which was contracted to Worley UK. Spanning 1,443 kilometers, EACOP is set to become the world’s longest heat-traced crude oil pipeline, marking a significant milestone in East Africa’s energy landscape.
The engineering and construction works for the EACOP project are underway on in Uganda and Tanzania, and in London United Kingdom. Heat-tracing makes the EACOP technically complex, requiring a range of specialized technical skills, equipment, materials, and significant infrastructure to support the construction of the pipeline. Multiple Ugandan companies, subcontracted by Worley UK, are undertaking high level engineering, civil works and structural designs at the five Main Camps and Pipe Yards (MCPYs). These will be for accommodation of the workers, and storage of the pipeline construction material and equipment, and the two Pump Stations (PS).
ICS Engineering and Environment Ltd, specializing in a wide range of civil and multi-disciplinary design projects was subcontracted by Worley to design civil and structural elements, including access roads to pump stations and mainline block valves, as well as to oversee the construction management of these projects in Uganda. This includes design of close to 5kms of access roads to the different pipeline installations.
Pearl Engineering Company Limited, specializing in infrastructure development, engineering, design, procurement, and construction, along with Excel Construction Ltd, which also focuses on design and construction services, are among the companies sub-contracted to undertake early civil works for the East African Crude Oil Pipeline (EACOP) project. Other key companies include ROHI Investments Limited, Muhick Oil and Gas Limited, Joysun International Limited (JOYSUN), Fulcrum Consult Limited (FULCRUM), which specializes in construction and heavy equipment rental, and WSS Services (U) Ltd, an engineering and design construction firm. Additionally, Alpha Geo-Engineering Ltd, a Ugandan subsidiary of Ethiopia’s Gondwana Engineering Plc, is providing geology, geotechnical engineering, and construction materials testing services. BETA Projects Limited, Geotechnical Engineering and Technology Laboratory Ltd, SOLITON TELMEC (U) LIMITED, and Emport Ltd, which focuses on equipment leasing, have also been engaged in the project.
These companies have been tasked with carrying out early civil works across various locations, including Hoima, Kakumiro, Mubende, Sembabule, and Kyotera. The scope of work covers camps, pump station sites, yards, and access facilities such as the Main Camps for Pump Stations 1 and 2, and the Main Camp and Pipe Yards. Their responsibilities include bush clearing, site grading, cut-and-fill operations, roadbed preparation, drainage system construction (including drainage ditches and sedimentation ponds), permanent fencing, cabin installations, and the construction of canteens, utilities, electrical systems, water distribution, and sewerage systems. They are also building pipe berms in storage areas.
Additionally, two government-owned entities have been contracted for the project: National Enterprise Corporation (NEC) Works and Engineering Ltd and National Water and Sewerage Corporation (NWSC). NEC is providing construction, architectural, and civil engineering services, while NWSC is responsible for supplying water to multiple EACOP operational sites. This includes designing and constructing pipelines to supply water to Pump Station-2 in Sembabule, as well as camp yards in Mubende and Kyotera.
Net Economic Value:
Ugandan companies have collectively earned USD 88.7 million (UGX 328.2 billion) from the EACOP project, injecting significant capital into the Ugandan economy. This financial boost not only supports local businesses but also contributes to improving Uganda's balance of trade and overall economic growth.
Beyond financial gains, these Ugandan companies are providing critical engineering, construction, and infrastructure services for the EACOP project, gaining invaluable experience in managing large-scale, complex projects. Their involvement, from site preparation to construction management, is positioning them as key players in the country’s growing oil and gas sector. This hands-on expertise equips them with the skills and capabilities needed to take on future mega-engineering projects, both domestically and internationally, further strengthening Uganda’s local industry and workforce.