EACOP vs Lamu pipeline

[Geza Ulole]

Lenders save stalled Eacop with $300m​

SATURDAY OCTOBER 08 2022​

Students demonstrate on September 29, 2022 against European Union lawmakers resolution to compel Uganda, Tanzania and Total Energies delay East African Crude Oil Pipeline. PHOTO | MORGAN MBABAZI | NMG

By JULIUS BARIGABA
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The East African Crude Oil Pipeline (Eacop) has attracted $300 million from alternative lenders as its proponents rush to save the project from pressure groups citing environmental concerns.

This week, Uganda received an additional pledge of $200 million from the Afriexim Bank towards erecting the pipeline whose total cost is $5 billion.

On October 3, Afriexim Bank executives, led by their chairman, Prof Benedict Oramah said they viewed the implementation of Eacop and related oil and gas projects, including financing of Uganda’s refinery, as a strategic business that will uplift African economies’ armoury to fight poverty.

Last month, the Islamic Development Bank also announced $100 million for the construction of Eacop, saying the lender’s Board of Executive Directors was ready to help in funding the project due to the importance of the oil and gas industry to the Uganda economy.

The money may be a trickle for now, but it could provide backup for the governments in Uganda and Tanzania to swat away growing pressure to abandon the project over pollution concerns.

French oil major TotalEnergies last month received censure from the European Parliament, citing rights violations and environmental problems.

Eacop is financed on a 60-40 percent debt-equity split, with lenders expected to provide loans while the shareholders – TotalEnergies, Uganda National Oil Company, Tanzania Petroleum Development Corporation and CNOOC – would raise the remainder through equity contribution.

The governments of Uganda and Tanzania have defended the project’s route as an integrated energy corridor that will transport crude oil and carry gas exports to the region, while eventually saving the environment by providing cleaner cooking fuel to villages.

Last week, President Yoweri Museveni said he initially did not support the idea of a pipeline as the best means to commercialise Uganda’s oil but later changed his mind on Eacop as it provides an alternative import channel for gas to Uganda.

“While we have a lot of oil, we don’t have much gas. Tanzania and Mozambique have a lot of gas. The same corridor where Eacop will run can bring a return pipeline to transport gas to Uganda. This is one of the reasons I am in support of the pipeline,” he explained at an oil and gas forum in Kampala.

Tanzania envisages final investment decision in 2025 for its $30 billion liquefied petroleum gas project, and production in 2029. Standard Bank Group, through its Ugandan subsidiary Stanbic Bank is one of the transaction advisors for the financing of Eacop, whose cost jumped from $3.5 billion to an estimated $5 billion, due to the increased cost of loans after major banks shunned the project as an environmental risk, lead investor TotalEnergies said in 2021.

Energy Minister Ruth Nankabirwa says Uganda is aware of the global push from fossil fuels to clean energy, but the country’s oil and gas projects are critical to enabling it to make the energy transition and should be accorded patience and understanding of the stage of its development.

“As a country, we are earnestly pursuing energy integration before we can talk about energy transition,” she said during the seventh edition of the Uganda International Oil and Gas Summit held in Kampala September 27 to 28.

She added that the Lake Albert oil and gas projects will see the government provide LPG to its citizens that still use biomass and argues that the oil and gas sector will thus play a key role in enabling the country to meet its climate change obligation as it provides cleaner energy options.

“The discovery of oil in Uganda is a unique chance to transform its economy by improving infrastructure and reduce poverty. We are proud to support the government with $100 million for the East Africa Crude Oil Pipeline Project to help export its oil,” the board said.

Lenders save stalled Eacop with $300m

Uganda received an additional pledge of $200m from the Afriexim Bank towards erecting the pipeline.

www.theeastafrican.co.ke

 

[KIBAKI GENIOUS]

Wakenya lazima wale kona. Na project hiyo inaanza mwezi huu wa nne.

Wakenya lazima wale kona. Na project hiyo inaanza mwezi

PROJECT ISHA NOA NANGA , "WAKUNIA" ANZENI KULIA NA KUKATA KONA😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂Uganda, Tanzania decry EU resolution on oil and gas development

By AT editor - 17 September 2022 at 6:31 pm

The governments of Uganda and Tanzania are pushing back against a resolution, passed by the European Union, that calls for environmental and human rights protections as the two nations develop the East African Crude Oil Pipeline (EACOP).
The European Parliament resolution warns that the project threatens wetlands and water resources, along with the livelihoods of “farmers, fisherfolk and tourism business owners” who depend upon natural resources in the region.
The EACOP, with investment from oil major Total and the China National Offshore Oil Corporation, is expected to impact 118,000 people as it stretches from Lake Albert to the Tanzanian port city of Tanga.
“The risks and impacts caused by the oil fields and pipeline infrastructure development are already reported to be immense, and have been exhaustively documented in numerous community-based impact assessments and independent expert studies,” said the resolution, which passed on Thursday.
But Uganda’s Thomas Tayebwa, deputy speaker for parliament, called out the EU for its excessive reliance on fossil fuels when compared with his own nation, and called the EU position “economic sabotage” against the right of a sovereign nation to benefit from its own oil and gas sector.

President Yoweri Museveni followed with reassurances that the project will move forward as planned.
“We should remember that Total Energies convinced me about the Pipeline idea; if they choose to listen to the EU Parliament, we shall find someone else to work with,” Museveni warned. “Either way, we shall have our oil coming out by 2025 as planned.”



In a statement to local media outlet The Citizen, Tanzanian energy minister January Makamba echoed the Ugandan commitment to move forward with the EACOP plan.

Ngoja sasa tuendelee kuwakera.

WA"KUNIA" WAKELEKA KUKELEKA,WENGI WAO WAMELAZWA HOSPITALINI KWA KUUGUA MAGONJWA YALETWAYO NA MFEREEJI WA MAFUTA GHAFI YA KUTOKA NCHINI UGANDA YAKIPITIA TANZANIA😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂Uganda, Tanzania decry EU resolution on oil and gas development​

By AT editor - 17 September 2022 at 6:31 pm

The governments of Uganda and Tanzania are pushing back against a resolution, passed by the European Union, that calls for environmental and human rights protections as the two nations develop the East African Crude Oil Pipeline (EACOP).
The European Parliament resolution warns that the project threatens wetlands and water resources, along with the livelihoods of “farmers, fisherfolk and tourism business owners” who depend upon natural resources in the region.
The EACOP, with investment from oil major Total and the China National Offshore Oil Corporation, is expected to impact 118,000 people as it stretches from Lake Albert to the Tanzanian port city of Tanga.
“The risks and impacts caused by the oil fields and pipeline infrastructure development are already reported to be immense, and have been exhaustively documented in numerous community-based impact assessments and independent expert studies,” said the resolution, which passed on Thursday.
But Uganda’s Thomas Tayebwa, deputy speaker for parliament, called out the EU for its excessive reliance on fossil fuels when compared with his own nation, and called the EU position “economic sabotage” against the right of a sovereign nation to benefit from its own oil and gas sector.

President Yoweri Museveni followed with reassurances that the project will move forward as planned.
“We should remember that Total Energies convinced me about the Pipeline idea; if they choose to listen to the EU Parliament, we shall find someone else to work with,” Museveni warned. “Either way, we shall have our oil coming out by 2025 as planned.”



In a statement to local media outlet The Citizen, Tanzanian energy minister January Makamba echoed the Ugandan commitment to move forward with the EACOP plan.

 

[KIBAKI GENIOUS]

😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂"We should remember that Total Energies convinced me about the Pipeline idea; if they choose to listen to the EU Parliament, we shall find someone else to work with,” Museveni warned. “Either way, we shall have our oil coming out by 2025 as planned.”

 

[Geza Ulole]

European Parliament finding on Uganda fails democracy, Total says

The European Parliament’s criticism of oil projects in Uganda failed to “respect the fundamental principles” of democracy, TotalEnergies has said.
By Ed Reed
10/10/2022, 2:32 pm
Photo of Ed Reed
© Photographer: Marlene Awaad/Bloombergtotalenergies pouyanne

TotalEnergies CEO Patrick Pouyanne
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The European Parliament’s criticism of oil projects in Uganda failed to “respect the fundamental principles” of democracy, TotalEnergies has said.

The company’s chairman and CEO Patrick Pouyanné had been due to speak to the Parliament today. Total said it would provide a letter instead.

The French company will not be represented at the hearing organised by the human rights sub-commitee.

Instead, Total pointed observers to a letter it had sent to the European Parliament President Roberta Metsola.

A robust response from Total became necessary after Ugandan officials came out against the resolution.

Ugandan President Yoweri Museveni warned that if Total did not pursue the development of Tilenga and the East African Oil Pipeline (EACOP), the country would find an alternative operator.

The company said the resolution contained a number of inaccuracies “based on serious and unfounded allegations. Unfortunately, it is now too late for this contradictory debate to take place as the European Parliament adopted this resolution without even hearing the company.”

The letter from Pouyanné expressed regret that the Parliament had passed the resolution. He also expressed concern that the institution had not sought any insight from Total before passing the resolution.

Most damaging
“It seems to me that, in this case, the adversarial principle on which the rule of law is based has not been respected in any way whatsoever,” he said. Passing the resolution contained “factual inexactitudes, and statements based on unfounded allegations, some serious, to be most damaging”.

The letter singled out the issue of displacement. The resolution had said that the oil development would see 100,000 people displaced.

Pouyanné said the project had needed to move only 5,000 people, or 723 households, into better quality housing. Some others have opted to move following compensation for farmland.

Inviting Pouyanné to talk for eight minutes to the sub-committee “does not in any way correct the situation created by this deliberation”, he said. “The adversarial principle can scarcely apply retroactively. You will understand that I do not intend to accept the invitation under these circumstances.”



TAGS
european parliament
Patrick Pouyanne
Tilenga
TotalEnergies
Uganda
Yoweri Museveni

European Parliament finding on Uganda fails democracy, Total says

The European Parliament’s criticism of oil projects in Uganda failed to “respect the fundamental principles” of democracy, TotalEnergies has said. The

www.energyvoice.com

 

[Magonjwa Mtambuka]

Sasa tuone kama hawa nyang'au watasema mradi wa bomba la gesi toka Dar hadi Mombasa ni uchafuzi wa mazingira.

 

[eliakeem]

Sasa tuone kama hawa nyang'au watasema mradi wa bomba la gesi toka Dar hadi Mombasa ni uchafuzi wa mazingira.

🤣 😂 🤣 na sisi tutakuwa kama Russia. Tunagawa gas E Afrika yote. EAGaP itaanzia Mtwara kwenda sehemu mbalimbali Afrika Mashariki.

 

[Geza Ulole]

 

[Gangi Longa]

 

[Gangi Longa]

 

[Magonjwa Mtambuka]

 

[Geza Ulole]

 

[The Sunk Cost Fallacy]

Wamekubali 👇

 

[Geza Ulole]

 

[The Sunk Cost Fallacy]

Total akizingua,China huyu hapa ku fund EACOP👇

 

[Geza Ulole]

 

[Geza Ulole]

 

[Geza Ulole]

 

[Geza Ulole]

Uganda to begin commercial oil exploration in 2025, seeks funding​

Uganda and neighbouring Tanzania are seeking funding from China to develop an export pipeline before 2025.

President Yoweri Museveni of Uganda [File: Mike Hutchings/Reuters]
Published On 2 Nov 20222 Nov 2022



Uganda aims to start commercially pumping its oil reserves in April 2025, with China being considered as a potential source of funds to develop an export pipeline, authorities said on Tuesday.

Although Ugandan officials have previously mentioned 2025 as the year for the commencement of production, it is the first time they are being specific on the month.

“I hope that by April 2025 we shall see the first oil,” energy minister Ruth Nankabirwa Ssentamu said at a conference in Abu Dhabi.

Uganda and neighbouring Tanzania are also confident they will secure funding for a planned crude export pipeline, she said.
Tanzania President Samia Suluhu Hassan was expected to travel to China soon, Ssentamu said, for “the completion of the mobilisation of resources. And I know that we will get money.”
“China is always ready,” she said when asked if the money would come from China. “China is always ready and I want to encourage Europe, I want to encourage America to [also] … invest in Uganda.”

In February, TotalEnergies and its partner China National Offshore Oil Corporation reached a final investment decision to develop Uganda’s oilfields in the country’s west.

Uganda’s President Yoweri Museveni has criticised the European Union parliament after it passed a resolution urging TotalEnergies to delay the development of the pipeline by a year to explore an alternative route or alternative renewable energy projects.

There has also been criticism from environmentalists about the proposed project because it runs through one of the country’s national parks. But Museveni has endorsed it, warning that he will not “allow anybody to play around” with “my oil”.

SOURCE: REUTERS

​

 

[Geza Ulole]

As banks fund oil pipeline, campaigners question their environmental pledges​

by Thomas Lewton on 1 November 2022

• Activists say some banks that have signed up to the Equator Principles are failing to live up to their pledge of properly assessing the environmental and social risks of the projects they finance.
• South Africa’s Standard Bank and Japan’s Sumitomo Mitsui Banking Corporation are facilitating funding for the East African Crude Oil Pipeline project (EACOP).
• When fully operational, crude oil flowing through pipeline will generate 34 million metric tons of greenhouse gas emissions each year.
• Activists say EACOP, which will run 1,400 kilometers (870 miles) across many ecologically sensitive areas, has also affected 12,000 households who have been inadequately compensated.

Activists have accused an association of banks claiming to adhere to principles safeguarding people and the environment of “greenwashing.” Two signatories of the Equator Principles are currently advising East African governments and their oil major partners on securing finance for the EACOP pipeline.

Banks signing up to the Equator Principles commit to respecting a set of voluntary guidelines through which the environment and social impacts of large industry projects are considered. South Africa’s Standard Bank and Japan’s Sumitomo Mitsui Banking Corporation (SMBC) are card-carrying members, along with more than 130 other financial institutions globally.

Yet Standard Bank and SMBC continue to facilitate the financing of the East African Crude Oil Pipeline project (EACOP).

“Banks are making a lot of promises, but not committing to any action. They are preaching water but drinking wine,” says Omar Elmawi, coordinator of the StopEACOP campaign.

Construction of the EACOP pipeline began last year. When completed, it will be the longest heated pipeline in the world, cutting a path from Lake Albert in Uganda to the port of Tanga in Tanzania. France’s TotalEnergies and the China National Offshore Oil Corporation are major stakeholders.

Road construction near Murchison National Park: machinery and heavy trucks for the pipeline within the park boundaries have disturbed wildlife. Image by Thomas Lewton.

EACOP’s route stretches 1,445 kilometers from Hoima to the port of Tanga in Tanzania. Image by Sputink via Wikimedia Commons (CC BY-SA 4.0).

“Standard Bank should not be proceeding with the EACOP project because financing it is in disregard of the Equator Principles,” says Elmawi, referring to a report produced by the Africa Institute for Energy Governance(AFIEGO), Inclusive Development International, and BankTrack in June.

Standard Bank has so far stopped short of directly funding EACOP, saying it will only do so if the project complies with the principles it has signed up to. AFIEGO’s report found that affected communities were not adequately informed and consulted; that the project fails to mitigate environmental risks to the protected ecosystems and water sources that it will pass through; and that the land acquisition process was improper.

“We have project-affected persons complaining that compensation is inadequate and delayed,” says Diana Nabiruma of AFIEGO. “Their income is reduced and they are not able to feed their children.”

“There’s ample evidence that this project is not going to meet the principles,” says Ryan Brightwell, research director at BankTrack. “It’s black and white in our view.”

But TotalEnergies says the consultants hired to carry out a risk analysis of the project for lenders reported there were no “red flag” items that would be considered no-go for financing. That consultant report, carried out for Standard Bank by Golder Associates, has not been made public even though the bank’s CEO committed to doing so in May.

“We want to know the list of communities and civil society groups that were consulted by Golder Associates,” Nabiruma says.

A spokesperson for Standard Bank said that “the findings of the report are currently being reviewed by internal experts. Standard Bank’s final assessment and subsequent decision will follow the project timeframes.”

Stephanie Platat, media relations officer for TotalEnergies, said: “All partners are committed to implementing these projects in an exemplary manner, taking into consideration the environmental and biodiversity stakes, as well as the rights of the concerned communities, in accordance with the stringent performance standards of the International Finance Corporation (IFC).

“The main conclusions of that report which has taken more than one year, combining desktop reviews, interviews, workshops and on the ground visits, found that EACOP either meets or is on track to meet all 8 IFC Performance Standards.”

In September, the European Parliament passed an emergency resolution condemning the EACOP project for human rights violations and environmental risks. “To say that there are no red flags raised is extraordinary,” says Brightwell, who called for a grievance mechanism that allows affected communities to hold banks directly to account when they fail to meet their Equator Principle commitments.

Following the Equator Principles annual general meeting in October, the organization announced new “due diligence tools” to improve access to grievance mechanisms.
Brightwell welcomes this but notes that these tools don’t address the question of accountability at the bank level.

“It’s not fit for purpose. We can’t rely on banks to do as they promise. But we don’t want to throw the baby out with the bathwater here. We do see the potential of the Equator Principles to ensure that risks are better managed in project finance.”

Elmawi, meanwhile, says the system needs to be overhauled to ensure that banks that contravene the principles pay substantial fines. “We have to be serious. These principles have to deter people from doing harms,” he tells Mongabay.

Pipeline subcontractors purchased a strip of land that cuts through Elizabeth Ayebare’s family’s farm in 2018, but the family has still not been compensated. Image courtesy of Thomas Lewton.

BankTrack has also called on members of the Equator Principles to go further and rule out all new investments in oil and gas. According to BankTrack, almost 200 new fossil fuel projects have been financed by signatories to the Equator Principles since 2016. “Banks are trying to look like they’re acting on the climate crisis, but they’re not committing to any action,” Elmawi says.

Both the International Energy Agency and the Intergovernmental Panel on Climate Change have said there can be no new fossil fuel developments if global warming is to be limited to 1.5° Celsius (2.7° Fahrenheit) above pre-industrial levels — the threshold beyond which scientists expect runaway changes to the climate will be set in motion — and the world is to reach net-zero emissions by 2050, targets set under the UN’s Framework Convention on Climate Change. EACOP will generate more than 34 million metric tons of carbon dioxide each year.

In September, the pipeline secured its first financial commitment to the tune of $100 million from the Saudi Arabia-based Islamic Development Bank, which is not a signatory to the Equator Principles.

A spokesperson for Standard Bank said: “Standard Bank is committed to maximising opportunities for sustainable and inclusive growth across the continent, while also managing the risks posed by climate change.”

A spokesperson for TotalEnergies said: “We are doing everything we can to make it an exemplary project in terms of transparency, shared prosperity, economic and social progress, sustainable development, environmental accountability and respect for human rights.”

Mongabay contacted the Equator Principles Association for comment but didn’t receive a reply by the time of publication.

As banks fund oil pipeline, campaigners question their environmental pledges

Activists have accused an association of banks claiming to adhere to principles safeguarding people and the environment of “greenwashing.” Two signatories of the Equator Principles are currently advising East African governments and their oil major partners on securing finance for the EACOP...

news.mongabay.com

 

[The Sunk Cost Fallacy]

Good move👇