Uganda’s path to EACOP Won’t be easy


President Yoweri Museveni
By: Barekye Gerald
geraldbarekye@gmail.com
Research associate Afiego

Worth Noting:

  • In 2021, about 250 non-governmental organizations begun a move urging commercial banks to stop funding EACOP and fought for EACOP affected communities to receive fair compensation for their land that was acquired for the path of the oil pipeline. This is because the Civil society organization said that EACOP have negative impact on the world’s climate change.
  • The civil society organization have played a very big role in making sure that EACOP doesn’t succeed. These organizations have used many platforms to spread awareness about dangers of EACOP to the environment, dangers in resettlement plans whereby people are being resettled and some chased out of their land, effect of oil to farmers, destruction of wildlife conservation areas that have resulted into death of much wildlife among others.

In 2006, Uganda discovered oil in Albertine Graben which seemed to be an opportunity to tap in for the lifetime. The discovery represented a change to build a new engine of economic growth to the country in creating thousands of new jobs and laying a foundation for the emergency of local service sector capable in supporting international oil companies.

Communities surrounding the Albertine region expected a lot of income generation activities from oil project and some begun establishing new businesses like hotels and lodge in the areas to earn a living from EACOP workers. During the discovery Uganda hoped to bring oil fields online as quick as hoped but in 2020, a deal was struck with the French oil major total and China’s state owned CNOOC on the development of kingfisher and Tilenga sites. In 2021, another deal was struck with total, CNOOC, and government of Tanzania on the construction of EACOP to create a market channel for oil Products.

However, much effort being done to refine this oil, there is much pressure imposed on EACOP that is making path for the oil refinery difficult. The path faces the challenges in land acquisition whereby the owners of land are complaining about low compensation and this has made the affected persons to go in courts of law to demand for a fair compensation hence delaying the process.

In 2021, about 250 non-governmental organizations begun a move urging commercial banks to stop funding EACOP and fought for EACOP affected communities to receive fair compensation for their land that was acquired for the path of oil pipeline. This is because the Civil society organization said that EACOP have negative impact on the world’s climate change.

The civil society organization have played a very big role in making sure that EACOP doesn’t succeed. These organizations have used many platforms to spread awareness about dangers of EACOP to the environment, dangers in resettlement plans whereby people are being resettled and some chased out of their land, effect of oil to farmers, destruction of wildlife conservation areas that have resulted into death of much wildlife among others.

The pressure on EACOP by the civil society organizations have resulted into several banks deciding not to join the group of moneylenders that will finance the project and as a result Total now expects the cost of the project to increase to USD5billions which is higher than the earlier estimated budget of USD3.55billion. This increase is caused by the high financing costs and if more banks continue to withdrew their funding the cost estimate will go up again making the pipeline more expensive to be built.

It should be noted that without pipeline, Uganda oil field will still be very expensive and harder to exploit and develop. This will make work of companies that are doing exploration work like Oranto petroleum unable to drill and export crude. This will lead to   licensing grounds becoming difficult to be done and succeed. Also, without pipeline Uganda won’t be able to refine capable oil to  satisfy domestic fuel demand and this will make Uganda to remain dependent on imported petroleum products that are both expensive and emission intensive due to involvement many costs in transportation.

If all the above is not put in order we are likely not to meet our expectations from EACOP.

Gerald Barekye

geraldbarekye@gmail.com

Previous WE NEED TO DRAW BACK OUR ATTENTION TO BOY CHILD
Next UHURU APPLAUDS YOUNG SCIENTISTS KENYA FOR EQUIPPING YOUTH WITH MODERN TECHNOLOGICAL SKILLS

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *