Page 10 - DMEA Week 48 2022

DMEA PIPELINES DMEA

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

TERMINALS & TRANSPORT
OPEC delegate: Iraq will start expanding

crude oil export capacity from next year

MIDDLE EAST IRAQ plans to start increasing oil export capac-
ity from its southern ports from 2023 to add
1mn barrels per day (bpd) to 1.5mn bpd by
2025, according to the country’s OPEC delegate.
The project involves rehabilitating the south-
ern port of Khor Al-Amaya and marine pipe-
lines, Mohammed Saadoon, Iraq’s national
representative at OPEC and a deputy direc-
tor-general of state oil marketer Somo, said in
an interview on state-run Iraqiya TV.
Export capacity from southern ports is due
to increase between 150,000-250,000 bpd from Southern Iraq is already home to an oil terminal at Khor Al-Amaya (Photo: INA)
next year, he said. Iraq exported 3.293mn bpd
from its southern ports in October, according after decades of turmoil marked by wars, sanc-
to the Ministry of Oil (MoO). tions and militant attacks. Saadoon said the out-
Iraq is trying to boost revenue from oil and put cuts decided by OPEC and its OPEC+ allies
entice global companies to work in the country last month would not affect Iraq’s oil exports

P10 www. NEWSBASE .com Week 48 01•December•2022