Page 7 - AfrOil Week 48 2022

AfrOil PIPELINES & TRANSPORT AfrOil

The pipeline will follow a 1,443-km route from western Ugandan to the Tanzanian coast (Image: EACOP)

“There are indications of a plausible link to harm Kakembo, a managing partner at the Cristal
or risk of harm to the complainant related to the Advocates law firm in Kampala, as saying that
sub-project,” the CAO wrote in its response. no local insurer or group of local insurers was
Following the review, Britam expressed capable of assuming the entire burden.
specific concerns about the failure to conduct Omar Elmawi, the coordinator of the StopE-
meaningful consultations with or provide ade- ACOP advocacy group, made a similar point,
quate and prompt compensation to affected noting that only international insurers had the
communities. It also raised questions about the financial capacity and credit ratings to provide
potential for irreversible environmental damage the primary coverage and re-insurance needed
to Murchison Falls National Park and other sen- for an undertaking of this scope. To date, he told
sitive ecosystems along the route of the pipeline, The East African, no foreign insurance company
as well as the dangers faced by human rights has stepped forward to lead the way.
activists opposing the EACOP project. “We are yet to hear any confirmation of an
Coleen Scott, a legal and policy associate at international insurer committing to insure
Inclusive Development International, told The EACOP, which means they still have a monu-
East African that the CAO’s response vindicated mental task ahead of them to get this project
her organisation’s opposition to the pipeline. going,” he remarked.
“Britam’s decision validates our assessment EACOP is the midstream component of
and confirms what we already knew: [EACOP] LADP, a $10bn initiative that aims to monetise
fails to comply with international standards,” she Uganda’s as-yet untapped crude oil resources. It
was quoted as saying by the newspaper. “This is envisions the construction of a 1,443-km pipe-
a major wakeup call to any insurance company line from Hoima in western Uganda to Tanga,
or [commercial] bank still providing or consid- a port on Tanzania’s Indian Ocean coast. The
ering support for EACOP. Britam should release EACOP pipeline will carry oil from the Tilenga
its evaluation in full so that other insurers and and Kingfisher oilfields, which TotalEnergies
banks can consider the findings when making and CNOOC are due to bring online starting in
their own decisions regarding this project.” 2025, and it will be heated to compensate for the
waxy nature of the crude.
Full coverage? Kingfisher and Tilenga will eventually yields
Ibrahim Kaddunabbi Lubega, the CEO of the more than 250,000 barrels per day (bpd), with
Insurance Consortium for Oil and Gas Uganda, 216,000 bpd flowing to world markets via
has said Britam’s exit will not affect his group’s EACOP. The balance will be directed to an as-yet
mission. As of June 1, 2022, the consortium had unbuilt refinery in Uganda for processing into
already carried out its task of insuring up to 30% fuels for sale in local and regional markets.
of the risk of the Lake Albert Development Pro- The European Parliament, the EU’s legisla-
ject (LADP), he informed The East African. tive arm, has called for a temporary freeze on
The newspaper pointed out, though, that the EACOP and LADP on the grounds that the pro-
Ugandan and Tanzanian governments, along jects pose too much risk to the environment and
with the international oil companies participat- to human rights. This move has drawn no small
ing in the projects – France’s TotalEnergies and amount of criticism in Kampala, where a num-
China National Offshore Oil Corp. (CNOOC) – ber of government officials have accused the
had yet to secure coverage for the remaining part EU of attempting to prevent an African country
of the project. It quoted energy law expert Denis from developing its own natural resources. ™

Week 48 01•December•2022 www. NEWSBASE .com P7