The China Mail - Investors agree $10 billion for controversial Uganda oil project

USD -
AED 3.672503
AFN 64.497874
ALL 81.380528
AMD 369.184597
ANG 1.789884
AOA 918.000281
ARS 1395.488197
AUD 1.381788
AWG 1.8
AZN 1.703045
BAM 1.667512
BBD 2.020641
BDT 123.098172
BGN 1.668102
BHD 0.378875
BIF 2985.894118
BMD 1
BND 1.270084
BOB 6.932419
BRL 4.925799
BSD 1.003253
BTN 94.565375
BWP 13.432689
BYN 2.835207
BYR 19600
BZD 2.017742
CAD 1.364775
CDF 2316.000054
CHF 0.777795
CLF 0.022638
CLP 890.969785
CNY 6.80505
CNH 6.800405
COP 3738.9
CRC 460.209132
CUC 1
CUP 26.5
CVE 94.012576
CZK 20.648299
DJF 178.651968
DKK 6.3499
DOP 59.661791
DZD 132.259755
EGP 52.725899
ERN 15
ETB 156.643406
EUR 0.84978
FJD 2.18395
FKP 0.734821
GBP 0.734295
GEL 2.679834
GGP 0.734821
GHS 11.286699
GIP 0.734821
GMD 72.999831
GNF 8804.55958
GTQ 7.660794
GYD 209.901226
HKD 7.83002
HNL 26.670759
HRK 6.405899
HTG 131.399121
HUF 301.720968
IDR 17354.2
ILS 2.905215
IMP 0.734821
INR 94.417203
IQD 1314.280599
IRR 1312899.999963
ISK 122.193911
JEP 0.734821
JMD 158.020607
JOD 0.708961
JPY 156.666043
KES 129.150164
KGS 87.420494
KHR 4024.093407
KMF 418.999917
KPW 899.950939
KRW 1466.210049
KWD 0.307599
KYD 0.836058
KZT 464.61503
LAK 22016.463537
LBP 89533.723815
LKR 323.055346
LRD 184.10709
LSL 16.368643
LTL 2.95274
LVL 0.60489
LYD 6.345837
MAD 9.195197
MDL 17.26071
MGA 4165.565455
MKD 52.36663
MMK 2099.606786
MNT 3578.902576
MOP 8.092183
MRU 40.138456
MUR 46.81999
MVR 15.454979
MWK 1739.54559
MXN 17.230296
MYR 3.918397
MZN 63.892811
NAD 16.368783
NGN 1361.259834
NIO 36.917043
NOK 9.23621
NPR 151.292686
NZD 1.67593
OMR 0.384501
PAB 1.003253
PEN 3.475021
PGK 4.365952
PHP 60.517979
PKR 279.534225
PLN 3.593095
PYG 6140.362095
QAR 3.656974
RON 4.452016
RSD 99.746014
RUB 74.299966
RWF 1470.817685
SAR 3.780174
SBD 8.032258
SCR 13.772608
SDG 600.55751
SEK 9.21375
SGD 1.26732
SHP 0.746601
SLE 24.597771
SLL 20969.496166
SOS 573.372496
SRD 37.431021
STD 20697.981008
STN 20.887684
SVC 8.778354
SYP 110.543945
SZL 16.363923
THB 32.185992
TJS 9.375794
TMT 3.51
TND 2.910164
TOP 2.40776
TRY 45.364802
TTD 6.786684
TWD 31.356503
TZS 2604.644023
UAH 43.928641
UGX 3752.28603
UYU 40.11647
UZS 12157.202113
VES 496.20906
VND 26309.5
VUV 118.026144
WST 2.704092
XAF 559.236967
XAG 0.012456
XAU 0.000212
XCD 2.70255
XCG 1.808106
XDR 0.695511
XOF 559.267959
XPF 101.680898
YER 238.601874
ZAR 16.395013
ZMK 9001.20103
ZMW 19.111685
ZWL 321.999592
  • RBGPF

    0.0000

    63.18

    0%

  • CMSC

    -0.0400

    22.97

    -0.17%

  • RYCEF

    -0.0500

    17.45

    -0.29%

  • GSK

    -0.0300

    50.5

    -0.06%

  • NGG

    -1.9400

    85.91

    -2.26%

  • BTI

    -1.4800

    58.08

    -2.55%

  • BCE

    0.3400

    24.57

    +1.38%

  • RIO

    -2.4000

    103.11

    -2.33%

  • VOD

    -0.4400

    15.69

    -2.8%

  • BP

    -0.8200

    43.81

    -1.87%

  • RELX

    -1.5900

    34.16

    -4.65%

  • BCC

    -1.4800

    72.76

    -2.03%

  • JRI

    -0.0200

    13.15

    -0.15%

  • AZN

    -2.4000

    182.52

    -1.31%

  • CMSD

    0.0000

    23.42

    0%

Investors agree $10 billion for  controversial Uganda oil project
Investors agree $10 billion for controversial Uganda oil project

Investors agree $10 billion for controversial Uganda oil project

Chinese and French oil giants finally sealed a $10-billion deal Tuesday to unlock Uganda's energy resources and build a vast regional oil pipeline, a mega-project that has incensed environmental groups.

Text size:

The so-called Final Investment Decision should pave the way for the export of millions of barrels of black gold that was first discovered in 2006 in Uganda, one of the world's most biodiverse regions.

The decision gives the final go-ahead to the long-delayed project and was hailed by Ugandan President Yoweri Museveni as an major economic boost for the landlocked East African country where many live in poverty.

Critics charge however that the ambitious scheme threatens the livelihoods of tens of thousands of people and fragile ecosystems in the heart of Africa.

The $10 billion investment deal was announced at a ceremony in Kampala by the heads of France's TotalEnergies and the local arm of the China National Offshore Oil Corporation (CNOOC).

The companies want to extract the huge crude oil reserves under Lake Albert, a 160-kilometre (100-mile) long natural border between Uganda and the Democratic Republic of Congo.

- 'A masterpiece' -

The oil would be pumped from Uganda in a 1,443-kilometre (900-mile) heated pipeline -– said to become the longest of its type when completed -- through Tanzania to the Indian Ocean port of Tanga.

TotalEnergies chairman and CEO Patrick Pouyanne described the controversial pipeline as a "masterpiece".

"Today is the day we commit to invest $10 billion in the Tilenga and Kingfisher projects and the 1,443-km long pipeline," he said.

"From today with the FID, the project will fully enter into the construction phase."

Museveni admitted he had been impatient about the long negotiating process to get the project off the ground, but said the pipeline could become a "nucleus" for East African oil.

The project has been hit by various obstacles including wrangling over tax agreements and a change of heart over the location of the pipeline which was initially due to go through Kenya.

Museveni also dismissed the concerns of environmental groups.

"Let the NGOs go and sleep in the bush if they want... There is nothing we are hiding."

Lake Albert lies atop an estimated 6.5 billion barrels of crude, of which about 1.4 billion barrels are currently considered recoverable.

Uganda's first oil is expected to flow in 2025 -- almost two decades after the reserves were discovered -- with full-scale commercial production planned for the following year when 230,000 barrels a day of the particularly viscous crude are expected to be pumped.

- 'Devastating' impact -

In Uganda, the drilling is located in several nature reserves, one of which extends to Murchison Falls, the country's largest national park.

TotalEnergies, formerly Total, said last year it had taken steps to reduce the project's impact on people and the environment, but conservation groups charge it will be devastating.

The pipeline project would be "displacing thousands of households, endangering water resources for millions of Ugandans and Tanzanians, devastating vulnerable ecosystems and pushing the world further into climate chaos," campaign group 350Africa.org's regional director Landry Ninteretse said in a statement.

A report last year by the International Federation for Human Rights (FIDH) based on studies with Oxfam said the project would affect more than 12,000 families and communities had no idea if their land would be lost.

A consortium of Ugandan and French NGOs filed a lawsuit in 2019 against the French company accusing it of failing to abide by legal obligations to protect the environment and the rights of the people affected by the project.

In December, the Court of Cassation, France's highest, ruled the case should be heard in a civil court rather than assigned to a commercial tribunal, in what the activists said was an important victory.

F.Jackson--ThChM