Page 7 - AfrOil Week 10 2022

AfrOil COMMENTARY AfrOil

Regulatory issues refineries, though did not explain in what way
Meanwhile, NNPC’s executive director of refin- this was helping. Presumably, he was not refer-
ing Mustapha Yakubu said at the same event that ring to the case of Dangote in which the NNPC
in order to reap the benefits of the expansion of has assumed a 20% share for a knock-down
modular refining, Nigeria needed to fully dereg- price, much of which it will pay for in crude
ulate the downstream sector. feedstock supplies.
He told delegates that liberalising the sale Meanwhile, Tunji Oyebanji, the managing
of gasoline (known locally as premium motor director of 11 Plc said the postponement of the
spirit) would encourage the establishment of full deregulation of the downstream sector was
more modular and condensate refineries. a major setback to the industry.
“We believe that there is need to improve He added that the liberalisation of the sector
our domestic refining capacity. That is why the would enable investors across the value chain to
NNPC is embarking on total rehabilitation of have “adequate returns on their investments,”
our four refineries and not just the usual turn- which was the goal of the Petroleum Industry
around maintenance. We are going to have Act (PIA).
locally refined products after the completion of Meanwhile, Emmanuel Omuojine, executive
the rehabilitation,” he said, in a nod to ongoing director at Rainoil Ltd, said that the removal of
work at state-owned refineries. subsidies would add significant value to Nige-
Yakubu added that NNPC was “support- ria’s foreign exchange reserves, increase compe-
ing private investors in establishing” planned tition and incentivise investment. ™

PIPELINES & TRANSPORT
EACJ postpones hearing on EACOP case

UGANDA/TANZANIA THE East African Court of Justice (EACJ) has
postponed the hearing of a case seeking to sus-
pend construction of a crude-oil export pipe-
line from Uganda to Tanzania’s coastline, EACJ
announced in a March 3 press release.
The EACJ, on March 2, postponed the case
brought by civil society organisations (CSOs)
that are seeking a temporary injunction to halt
work on the pipeline, which will run from the
Hoima district in western Uganda to the port of
Tanga in Tanzania.
The pipeline will be critical to enabling land-
locked Uganda to monetise its oil discoveries, as
it will allow the country to export crude to buy-
ers overseas.
The CSOs want proponents of the East Afri-
can Crude Oil Pipeline (EACOP) – namely,
TotalEnergies of France, China National Off-
shore Oil Corp. (CNOOC), and the govern-
ments of Tanzania and Uganda – to be barred EACOP will have a throughput capacity of 216,000 bpd (Image: UNOC)
from starting building work until the main case
against the project is heard. temporary injunction were filed in November
The case was filed by the Centre for Food and 2020. Since then, the case has been heard once,
Adequate Living Rights (CEFROHT)-Uganda, in July 2021.
the Africa Institute for Energy Governance The main case argues that EACOP will cause
(AFIEGO)-Uganda and Natural Justice-Kenya irreparable harm to critical ecosystems and to
among others. the livelihoods of East Africans. It also claims
These three CSOs said in a March 3 press the project violates the East African Commu-
release that the postponement of the case with- nity (EAC) Treaty, the Protocol for Sustainable
out clear timelines as to when the legal suit Management of the Lake Victoria Basin and
will be concluded is an issue of concern. “It is a other laws.
marked departure from the principle of preven- The applicants have requested a declaration
tion which requires the earliest possible inter- that execution of the EACOP project in legally
vention to protect the environment rather than protected areas contravenes the EAC Treaty.
look to repairing the damage once it is done,” They also sought a permanent injunction pre-
said the CSOs. venting Uganda and Tanzania from construct-
Both the main case and application for a ing EACOP in protected areas, among others.

Week 10 09•March•2022 www. NEWSBASE .com P7