Energy Minister Ruth Nankabirwa has expressed disappointment with international financial institutions, which have shied away from funding the $5 billion East Africa Crude Oil Pipeline (EACOP) amid pressure from climate change activists.
Speaking during the 10th East African Petroleum Conference and Exhibition in Kampala on Tuesday, 09 May 2023, Ms Nankabirwa said such funders are complicit to Africa remaining stuck in energy poverty.
The minister said energy access and security are an important aspiration for the East African region and therefore there is a need to exploit all the available energy resources, including oil and gas.
“We are closely watching international financing institutions that are burying their heads in the sand at a time when Africa is fighting energy poverty. I can assure you we shall get the funding needed for the EACOP,” Nankabirwa said.
She was speaking days after it emerged that another prospective funder, Standard Chartered Plc, withdrew from funding the project, flagging it as an environmental risk.
The construction of EACOP, the world’s longest heated crude oil pipeline proposed by French Oil Company Total and the China National Offshore Oil Corporation (CNOOC) has already been delayed by the complexities and grievances regarding environmental concerns.
But according to the minister, it is not fair for the funders to pull out yet they financed the exploration.
“It is not fair for financing institutions to pull out of our projects when you financed the exploration, as Africa, we may not have enough finances but we are not poor. Africa is to start looking for financing from alternative sources,” Nankabirwa said.
The conference, which ends on May 11 is being held under the theme “East Africa; a hub for investment in exploration and exploitation of petroleum resources for sustainable energy and social economic development.”
In her remarks, Ms. Irene Batebe, the Permanent Secretary in the Ministry of Energy, said there is a lot of oil potential in many areas, which are yet to be explored.
“We are looking at operational sustenance, so we have an aggressive program where we are exploring new basins. We are happy to report that we have encountered some prolific seepage in the Moroto-Kadam Basin,” Batebe said.
She added that Uganda has 88% drilling success, with 85% of the Albertine Graben unlicensed, while 5 blocks up for grabs in the 2nd licensing round.
NJ Ayuk, an author, who was a guest speaker, said despite the funding challenges, encouraged African countries to become energy independent.
“Wealth nations need to decarbonise and East Africa needs to industrialise. East Africa must use its resources to eradicate poverty,” he said.
“East Africa must continue on its mission to exploit its resources and keep moving, keep driving, keep exploring because it’s through exploration that we shall make more discoveries of new resources,” he added.
Dr Elly Karuhanga, a businessman, called on the public and private sector in the region to unleash their full potential while devising practical solutions to local challenges in the sustainable development of the oil and gas sector.
“A good father leaves behind wealth for his children’s children, and as East Africans, we should ensure we leave wealth for our East Africa’s children’s children,” he said.
Vice President Jessica Alupo was the chief guest at the exhibition and toured several stalls.
