Uganda’s plan to build a $3.5 billion pipeline for oil exportation has met with stiff resistance from international and local campaign organisations who have written to block the provision of finance for the project.
The 1,445 kilometres pipeline is proposed to run from fields in the west of Uganda to Tanzania’s Indian Ocean port of Tanga. Transporting about 200,000 barrels per day (bpd) during peak periods in oil production, it will cross the catchment in Lake Victoria made up of rivers and swampland as well as areas in wildlife.
The channel is considered essential in the development of oil reserves in the country particularly as it has been unable to record significant progress since oil reserves estimated to hold six billion barrels in western fields were discovered in 2006. The Ugandan fields are managed by France’s Total, China’s CNOOC and Britan’s Tullow Oil control
However, the project is reportedly risky and could damage local livelihoods, water resources, and wildlife. The potential risk is what led to a group of 30 activist firms petitioning two banks that are responsible for raising the debt to fund the pipeline to abandon the plan. The banks are South Africa’s Standard Bank Group and Japan’s Sumito Click here to read entire article
Source:: Ventures Africa