The Fort Worth Press - Investors agree $10 billion for controversial Uganda oil project

USD -
AED 3.673005
AFN 68.386442
ALL 93.021933
AMD 389.349314
ANG 1.803734
AOA 913.000031
ARS 1002.721397
AUD 1.53358
AWG 1.8
AZN 1.702057
BAM 1.854577
BBD 2.020785
BDT 119.602116
BGN 1.858799
BHD 0.376916
BIF 2956.030306
BMD 1
BND 1.344124
BOB 6.930721
BRL 5.790848
BSD 1.000863
BTN 84.433613
BWP 13.672612
BYN 3.275301
BYR 19600
BZD 2.017372
CAD 1.39639
CDF 2864.999911
CHF 0.88374
CLF 0.035265
CLP 973.069559
CNY 7.241401
CNH 7.24719
COP 4396.59
CRC 508.251983
CUC 1
CUP 26.5
CVE 104.558213
CZK 24.0877
DJF 178.22092
DKK 7.087555
DOP 60.364405
DZD 133.750861
EGP 49.678296
ERN 15
ETB 124.782215
EUR 0.950275
FJD 2.269701
FKP 0.789317
GBP 0.791103
GEL 2.740301
GGP 0.789317
GHS 15.887842
GIP 0.789317
GMD 71.000247
GNF 8627.008472
GTQ 7.726299
GYD 209.391416
HKD 7.782965
HNL 25.291226
HRK 7.133259
HTG 131.472895
HUF 390.756993
IDR 15903.25
ILS 3.732285
IMP 0.789317
INR 84.493503
IQD 1311.043259
IRR 42092.505939
ISK 138.290123
JEP 0.789317
JMD 158.639851
JOD 0.709302
JPY 154.656495
KES 129.249619
KGS 86.506766
KHR 4038.536303
KMF 467.499881
KPW 899.999621
KRW 1398.125025
KWD 0.30759
KYD 0.834076
KZT 497.17423
LAK 21976.521459
LBP 89633.50686
LKR 291.187013
LRD 181.150969
LSL 18.152914
LTL 2.95274
LVL 0.60489
LYD 4.883414
MAD 9.998293
MDL 18.214834
MGA 4685.233124
MKD 58.48862
MMK 3247.960992
MNT 3397.999946
MOP 8.024142
MRU 39.785889
MUR 46.412517
MVR 15.460006
MWK 1735.461174
MXN 20.325297
MYR 4.464971
MZN 63.950307
NAD 18.152914
NGN 1680.590024
NIO 36.829479
NOK 11.03348
NPR 135.09167
NZD 1.703345
OMR 0.385001
PAB 1.000778
PEN 3.7981
PGK 4.029035
PHP 59.039501
PKR 278.226704
PLN 4.126669
PYG 7838.117183
QAR 3.649699
RON 4.729799
RSD 111.205995
RUB 101.000437
RWF 1380.157217
SAR 3.754257
SBD 8.355531
SCR 13.619994
SDG 601.497088
SEK 11.030315
SGD 1.343699
SHP 0.789317
SLE 22.575045
SLL 20969.504736
SOS 571.975839
SRD 35.43028
STD 20697.981008
SVC 8.757041
SYP 2512.529858
SZL 18.142596
THB 34.647019
TJS 10.658746
TMT 3.5
TND 3.159078
TOP 2.342102
TRY 34.465475
TTD 6.776157
TWD 32.567494
TZS 2652.359028
UAH 41.269214
UGX 3693.413492
UYU 42.784805
UZS 12854.406494
VES 46.433371
VND 25422.5
VUV 118.722009
WST 2.791591
XAF 622.001915
XAG 0.032192
XAU 0.000375
XCD 2.70255
XDR 0.761528
XOF 622.001915
XPF 113.087675
YER 249.924998
ZAR 18.116198
ZMK 9001.198706
ZMW 27.697968
ZWL 321.999592
  • RYCEF

    0.1900

    6.8

    +2.79%

  • CMSC

    0.1200

    24.64

    +0.49%

  • RBGPF

    -0.5000

    59.69

    -0.84%

  • SCS

    0.0920

    13.162

    +0.7%

  • BCC

    2.2800

    139.69

    +1.63%

  • NGG

    -0.6290

    62.641

    -1%

  • GSK

    -0.0450

    33.305

    -0.14%

  • JRI

    0.0300

    13.26

    +0.23%

  • VOD

    -0.0850

    8.855

    -0.96%

  • BTI

    -0.1650

    36.915

    -0.45%

  • RELX

    0.3650

    45.475

    +0.8%

  • BCE

    -0.4450

    26.555

    -1.68%

  • CMSD

    0.1910

    24.451

    +0.78%

  • BP

    0.2400

    29.32

    +0.82%

  • RIO

    -0.2200

    62.17

    -0.35%

  • AZN

    0.6300

    63.83

    +0.99%

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.

M.McCoy--TFWP