Uganda’s unstoppable journey to first oil
Elison Karuhanga
It has been a momentous week for Uganda’s oil industry, marking significant progress in its unstoppable journey to first oil. Amidst the achievements and milestones reached, it is crucial to shed light on the positive impact the oil sector will have on Uganda’s development and energy security.
One of the pivotal accomplishments this week is the celebration of a major milestone by Eacop Limited, as they move forward with the construction of the 1,443km cross border pipeline that will move from Hoima in Western Uganda to the India Ocean port of Tanga in Tanzania. While Western NGOs and their local satellites have raised concerns about the pipeline’s impact on communities, it is essential to set the record straight. The claims of hundreds of thousands of people being made homeless by the pipeline are simply a fabrication fuelled by the imaginations of some groups, and distributed on an industrial scale by sections of the Western press.
Eacop, on its part, has demonstrated a genuine commitment to working with the affected communities and local leaders to ensure a positive impact on the population. According to figures from Eacop, out of the 3,633 households that may be impacted by the pipeline in Uganda, only 203 households will be physically displaced by the pipeline. Of those households, 177 people opted for replacement houses and the rest opted for cash compensation. Eacop this week handed over all the 177 houses, and in most cases, provide accommodations that is far superior to those they had before.
Additionally, Eacop has implemented innovative livelihood restoration programmes aimed at empowering the project affected persons (PAPs), enhancing their income-earning capacity, production levels, and overall quality of life. The entire construction process has been efficiently managed and completed on time and budget by a collaboration of local Ugandan construction companies, further bolstering the local economy.
On the Tanzanian side, where 91 percent of the pipeline traverses, 99 percent of the 9,898 PAPs have already signed compensation agreements and have received compensation. Only 344 households will be physically displaced. In Tanzania, Eacop is in the process of finalising construction of these houses.
The story of the Eacop Resettlement Action Plan – the actual construction and the community engagement and experiences – is a story that should be told in greater deal by those more competent than this humble columnist. For now, to the local leaders, the affected persons and the project company: we congratulate you on a significant step taken in the long journey of 1,443 steps.
Moreover, Uganda’s progress towards first oil has seen significant advancements in oil well drilling at the Kingfisher oil fields operated by Cnooc and the Tilenga oil fields operated by Total Energies. The Petroleum Authority of Uganda’s update indicates the active involvement of drilling rigs at various well pads, showcasing tangible progress towards oil production.
Critics have often voiced concerns over environmental impacts related to oil projects. However, it is crucial to look at the broader picture and recognise the importance of energy security and economic growth for a nation like Uganda. In the United States, president Biden’s decision to proceed with the Mountain Valley Pipeline, emphasising its significance in ensuring national energy security and revenue generation, is worth noting.
Uganda, as a developing nation, should not be hindered by the opposition of poverty conservationists masquerading as environmentalists. The responsible development of its oil resources will undoubtedly bring about substantial social and economic benefits, elevating the living standards of its citizens and contributing to the global economy. Indeed, embarking on this oil project is in the best interest of Uganda and its people. It represents an opportunity for the country to secure its energy needs and generate much-needed revenue for its treasury. With the world’s attention focused on sustainability and climate change, responsible oil production can coexist with environmental considerations.
The journey to first oil in Uganda has seen remarkable strides this week, with the Eacop pipeline and oil well drilling making substantial progress. The efforts made to ensure positive impacts on affected communities and the nation’s commitment to responsible development are worthy of praise.
The writer is an advocate and partner at Kampala Associated Advocates
