TotalEnergies to assess mega-projects in Uganda and Tanzania

TotalEnergies has hired former prime minister of Benin Lionel Zinsou to assess its land acquisition programme related to its Tilenga oil production project and construction of the East African Crude Oil Pipeline (EACOP), Reuters reported on Thursday.

The assessor is tasked with evaluating procedures and conditions of the purchase as well as methods of relocation of citizens and grievances.

Additionally, Zinsou’s consulting company SouthBridge will review actions taken by TotalEnergies to increase living conditions of surrounding communities and those directly affected.

The report is expected to be submitted by April 2024.

Together, the Tilenga and EACOP projects include a land acquisition programme covering 65 square kilometres in Uganda and Tanzania and involves relocating 775 primary residents, whether through compensation or relocation.

According to TotalEnergies, 98% of households connected with the programme have signed agreements, with 97% choosing to be compensated. A total of 98% of those who chose relocation have been successfully moved.

TotalEnergies and its partner China National Offshore Oil Corporation (CNOOC) made their FID on the two projects in February 2022.

The projects have come under scrutiny by environmental watchdog groups, including legal arbitrations. TotalEnergies has denied all allegations.

The renegotiated Tilenga project now consists of developing six fields and the drilling of around 400 wells from 31 locations.

Oil, gas and water produced by the project will be transported via underground pipeline to a water treatment plant in Kasenyi, Uganda.

The Tilenga project is operated by TotalEnergies with a 56.67% stake alongside its partners CNOOC with a 28.33% stake and Uganda National Oil Company holding the remaining 15% stake.

The EACOP development consists of an underground 1,443-kilometre oil pipeline between Kabaale, Uganda and the port of Tanga in Tanzania, six pumping stations and construction of a storage terminal and loading jetty in Tanga.

The EACOP project is split between shareholders, with TotalEnergies taking a 62% stake, Uganda National Oil Company with a 15% stake, Tanzania Petroleum Development Company with a 15% stake and CNOOC with the remaining 8% stake.