{"id":10255,"date":"2021-04-19T23:10:16","date_gmt":"2021-04-19T23:10:16","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=10255"},"modified":"2021-04-22T23:13:19","modified_gmt":"2021-04-22T23:13:19","slug":"greenpeace-and-western-anti-africa-energy-groups-take-the-wrong-approach-to-east-africa-crude-oil-pipeline-eacop-in-uganda-and-tanzania","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/greenpeace-and-western-anti-africa-energy-groups-take-the-wrong-approach-to-east-africa-crude-oil-pipeline-eacop-in-uganda-and-tanzania\/","title":{"rendered":"Greenpeace and Western Anti Africa Energy Groups Take the Wrong Approach to East Africa Crude Oil Pipeline (EACOP) in Uganda and Tanzania"},"content":{"rendered":"<p><strong><em>By\u00a0<span class=\"il\">NJ<\/span>\u00a0<span class=\"il\">Ayuk<\/span>, Executive President of the African Energy Chamber.<\/em><\/strong><\/p>\n<p>If someone were to put me on the spot and ask me to name an environmentalist group, I\u2019d probably blurt out the first thing that comes to mind, Greenpeace. There are obvious reasons for this: Greenpeace has been around for more than 50 years, and it has done a masterful job of bringing environmental concerns to the world\u2019s attention and keeping them there. The group has a strong track record when it comes to advocacy and awareness, and it has a global reach. It\u2019s truly one of the most visible non-governmental organizations (NGOs) in the world.<\/p>\n<p>And that\u2019s why I see it as significant that Greenpeace\u2019s African division has come out swinging for a major new oil pipeline slated for construction in Uganda and Tanzania. Let me explain what I mean.<\/p>\n<p><strong>What\u2019s at Stake<\/strong><\/p>\n<p>On April 14, Greenpeace issued a statement expressing dismay about the signing of a new agreement on the East Africa Crude Oil Pipeline (EACOP), a midstream project involving Uganda, Tanzania, the French major Total, and China National Offshore Oil Corp. (CNOOC).<\/p>\n<p>The agreement serves to remove one of the final obstacles to the building of the pipeline, which will transport crude oil from fields in western Uganda, near Lake Albert, to a port on the Tanzanian coast. As such, it also clears the way for Total and CNOOC to set a concrete schedule for development of the upstream assets that will fill the line \u2014 and for investors to start pumping more than $5 billion into East Africa.<\/p>\n<p>Greenpeace believes that Uganda and Tanzania ought to turn down this foreign direct investment (FDI). They explained their position by pointing out that EACOP poses environmental risks \u2014 which is hardly surprising, given their record on all seven continents. But they also argued that there were hard economic and political reasons to ditch the pipeline. Specifically, Greenpeace asserted that the building of the pipeline would have the following negative effects:<\/p>\n<ul>\n<li>It would stymie the development of renewable energy and the creation of so-called green jobs.<\/li>\n<li>It would benefit large multi-national corporations and not local communities.<\/li>\n<li>It would involve Uganda and Tanzania in \u201cneo-colonial projects.\u201d<\/li>\n<\/ul>\n<p>These are strong words to use, and they deserve a strong \u2014 and serious \u2014 response from Africans.<\/p>\n<p>I have one: Greenpeace and Western Anti African energy groups, you\u2019re wrong.<\/p>\n<p><strong>Oil vs. Renewables: \u201cBoth-And,\u201d Not \u201cEither-Or\u201d<\/strong><\/p>\n<p>First, you\u2019re wrong to predict that renewables will be crowded out if an oil pipeline is built. That\u2019s not true.<\/p>\n<p>EACOP is an export-oriented project, in that it\u2019s designed to pump 216,000 barrels per day (bpd) of oil, or about 83% of peak output from Uganda\u2019s Kingfisher and Tilenga fields, to the Tanzanian coast so that it can be loaded onto tankers and sold on the world market. In other words, most of Uganda\u2019s oil won\u2019t be going to refineries so that it can be processed into fuel for local power plants.<\/p>\n<p>As a result, EACOP won\u2019t help Uganda or Tanzania overcome their domestic energy deficits, which are considerable. These two countries will still need more electricity to support industrialization initiatives and improve citizens\u2019 quality of life after the pipeline is built. They\u2019ll still need power plants \u2014 and they should try to meet that need by building solar farms, wind parks, and hydroelectric dams. I happen to think they should also build natural gas-fired thermal power plants (TPPs), which boast lower emissions than facilities that burn petroleum products, but my point is: There\u2019s nothing about building an oil pipeline that takes renewable energy off the table. (In fact, small-scale, locally-oriented renewable facilities may also have the advantage of not being subject to the deficiencies of East Africa\u2019s transmission networks.)<\/p>\n<p>So it\u2019s wrong to describe this as an \u201ceither-or\u201d situation, in which a binary choice must be made. It\u2019s a \u201cboth-and\u201d situation. Tanzania and Uganda stand to benefit from pursuing both renewables and an oil pipeline. Let\u2019s not stand in their way by framing the matter incorrectly.<\/p>\n<p><strong>Local Impact and Local Content<\/strong><\/p>\n<p>Second, you\u2019re wrong to conclude that EACOP overlooks the interests of Ugandan and Tanzanian citizens and the communities along the pipeline route.<\/p>\n<p>Yes, Total and other corporations involved stand to benefit from this project. (If they didn\u2019t, they\u2019d never agree to pump billions of dollars into it, and they might have a hard time convincing reputable service providers to sign contracts.) Greenpeace has never invested in any country and has never created a job. Okay they create a few jobs for drivers of the western aid workers in Africa.<\/p>\n<p>But Uganda and Tanzania will benefit, too from Total\u2019s investment. These two countries will earn revenues from oil flows through the pipeline and from oil sales. (Uganda alone may bring in as much as US$2 billion per annum over a period of at least 20 years.) Their governments will collect taxes from the local contractors that see their income rise as a result of their involvement in the project. Their businesses will profit from dealings with Total and CNOOC, which will have to hire local contractors in order to comply with local-content regulations and uphold their own contractual commitments. Their people will reap the rewards of the social welfare and infrastructure development projects these companies plan to carry out. Their societies as a whole will benefit from the construction of new infrastructure facilities such as roads, airports, hotels, and communications networks.<\/p>\n<p>What\u2019s more, ordinary Ugandans and Tanzanians will have a better chance of finding work once Total starts building the pipeline, for this project promises to create jobs \u2014 tens of thousands of them, and perhaps more than 100,000 of them overall. Samia Suluhu Hassan, the president of Tanzania, said on April 11 that she expected EACOP to create at least 10,000 jobs.<\/p>\n<p>Mary Goretti Kitutu, the energy minister of Uganda, went into more detail, saying on the same day that she expected around 14,000 men and women to be hired directly by Total and CNOOC. About 57% of these people will be local workers, she added. She also stated that the upstream and midstream projects were likely to create many more jobs indirectly, with contractors to Total and CNOOC hiring around 45,000 people and businesses in other sectors taking on perhaps another 105,000 employees to handle the extra activity arising from oil operations. Facts and truth can be stubborn for those who believe foreign aid, begging and immigration to Europe should be the only way out for African youth.<\/p>\n<p>Of course, these jobs won\u2019t all last forever. Many of them will involve construction or related activities, and these will naturally come to an end once the construction projects are finished. While they exist, though, they will give tens of thousands of Africans the chance to earn larger salaries \u2014 and, potentially, gain more experience and obtain more training than they had before and start a sustainable business. As such, they have the potential to improve tens of thousands of lives in Africa \u2014 not just by increasing wages, but by creating opportunities for local workers to pick up skills they can still use after the pipeline is finished.<\/p>\n<p>So it\u2019s wrong for Greenpeace and the anti-African energy crowd to say these projects merely pay lip service to local communities. Officials in Uganda and Tanzania have worked hard to ensure that the EACOP project has a far-reaching and positive impact, and they have established new laws and policies to guard their citizens\u2019 interests.<\/p>\n<p><strong>Take Up the NGO\u2019s Burden: Who Are the Real Neo-Colonialists?<\/strong><\/p>\n<p>Finally, Greenpeace and the western anti-African energy crowd are wrong to describe EACOP as a \u201cneo-colonial\u201d endeavor. Come on this gives Chutzpah a new meaning.<\/p>\n<p>Yes, there are foreign companies involved \u2013 Total, based in France, a former colonial power, and CNOOC, a company based in China, a rising power that stands ready to assist less-developed countries, provided that they agree to loan terms that are sometimes predatory. And yes, the largest portion of the EACOP consortium has been assigned to Total, which holds a stake of 72%. (CNOOC, meanwhile, has 8%.) But these foreign companies aren\u2019t working alone. EACOP will also include Uganda National Oil Co. (UNOC), with 15%, and Tanzania Petroleum Development Corp. (TPDC), with 5%.<\/p>\n<p>Take a close look at those numbers Greenpeace. You\u2019ll see that both transit states have an equity stake in the pipeline \u2014 and that one of them has a larger stake than Total\u2019s Chinese partner. Let me also point out that even if Total does have the largest stake, it is also serving as operator of the project and will assume most of the risk. As such, it stands to lose much more than UNOC, TPDC, or CNOOC if EACOP fails. That is how free markets works. You can\u2019t love jobs and hate those who create jobs. Let\u2019s face it, we in Africa need more free markets than communism. Free markets are still our best path to prosperity.<\/p>\n<p>Tell me, how exactly is this a \u201cneo-colonial\u201d arrangement? Have Uganda and Tanzania really bowed under pressure from powerful external forces, or have they spent years negotiating a deal with two foreign companies that agreed to their conditions?<\/p>\n<p>And speaking of pressure from powerful external forces, is Greenpeace\u2019s approach truly free of \u201cneo-colonial\u201d elements? I didn\u2019t know Greenpeace was a Pan Africanist NGO. Is the NGO using its position as one of the world\u2019s most well-known environmental groups to ensure that local environmental advocates have a bigger bully pulpit? Is its opposition to EACOP rooted in the dreams and desires of ordinary Ugandans and Tanzanians, or is it trying to impose a solution from outside, on the basis of the global environmental movement\u2019s pre-existing animus towards fossil fuels?<\/p>\n<p>It\u2019s wrong to use a historically and emotionally loaded word like \u201cneo-colonialism\u201d in this instance. It\u2019s wrong to imply that Tanzania and Uganda have been coerced into working with foreign corporations, and it\u2019s wrong to invoke colonialism in the hope of convincing Africans to listen to a different group of people who think they know best. Let Africans decide for themselves!<\/p>\n<p><strong>Balancing Environmental Risks with Other Crucial Considerations<\/strong><\/p>\n<p>Listen, I don\u2019t fault Greenpeace for the concerns it expresses about environmental risks.<\/p>\n<p>The NGO is not wrong to point out that with pipelines, there will always be the danger of spills, leaks, and damage to surrounding ecosystems and habitats. I hope it continues to advocate fiercely for the African landscapes that Greenpeace mentions, such as the Murchison Falls National Park, which is the largest and oldest nature reserve in Uganda. That advocacy is its mission \u2014 and frankly, the business community needs to listen to critics as well as cheerleaders so that it can learn, improve, and give back to host communities. (Government officials must do the same so that they protect their constituents even as they guard revenue streams.)<\/p>\n<p>But Greenpeace is wrong to argue that EACOP is not worth pursuing because it will overshadow renewable energy, because it will ignore the interests of the countries involved, or because it represents some type of neo-colonialism. Instead, it\u2019s overstepping \u2014 and in the process of doing so, it\u2019s wasting time that could be spent looking for ways to balance environmental protection with other crucial considerations, such as job markets, entrepreneurship, energy poverty, and budget revenues.<\/p>\n<p>So let\u2019s not waste any more time. Let\u2019s strive towards that balance.<\/p>\n<p>Let\u2019s start now.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By\u00a0NJ\u00a0Ayuk, Executive President of the African Energy Chamber. If someone were to put me on the spot and ask me to name an environmentalist group, I\u2019d probably blurt out the &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/greenpeace-and-western-anti-africa-energy-groups-take-the-wrong-approach-to-east-africa-crude-oil-pipeline-eacop-in-uganda-and-tanzania\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7443,11],"tags":[476,6178,742,775,3953,7414,1434,5275,2466,7413,2533,2543,2603,6728],"class_list":["post-10255","post","type-post","status-publish","format-standard","hentry","category-countries","category-eastern-africa","category-top-news","tag-cnooc","tag-eacop","tag-energy","tag-environment","tag-greenpeace","tag-kingfisher","tag-local-content","tag-renewables","tag-tanzania","tag-tilenga","tag-total","tag-tpdc","tag-uganda","tag-unoc","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-2Fp","jetpack-related-posts":[{"id":10224,"url":"https:\/\/www.oilnewskenya.com\/index.php\/not-under-our-watch-greenpeace-africa-responds-to-east-africa-crude-oil-pipeline-deal\/","url_meta":{"origin":10255,"position":0},"title":"Not Under Our Watch: Greenpeace Africa Responds to East Africa Crude Oil Pipeline Deal","author":"","date":"April 14, 2021","format":false,"excerpt":"\u00a0 East Africa needs energy security based on widespread rollout of renewables and the millions of clean jobs that come with it, and it needs to protect its natural heritage In response to the news that Uganda, Tanzania and oil firms Total and CNOOC have signed agreements\u00a0 to kickstart the\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/04\/e9844dc53243e300ad9a2d5e04c862e5.jpeg?fit=800%2C534&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/04\/e9844dc53243e300ad9a2d5e04c862e5.jpeg?fit=800%2C534&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/04\/e9844dc53243e300ad9a2d5e04c862e5.jpeg?fit=800%2C534&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/04\/e9844dc53243e300ad9a2d5e04c862e5.jpeg?fit=800%2C534&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":10111,"url":"https:\/\/www.oilnewskenya.com\/index.php\/east-african-crude-oil-pipeline-eacop-will-disenfranchise-local-communities-in-uganda-tanzania\/","url_meta":{"origin":10255,"position":1},"title":"East African Crude Oil Pipeline (EACOP) Will Disenfranchise Local Communities in Uganda &#038; Tanzania","author":"","date":"March 26, 2021","format":false,"excerpt":"By Charity Migwi of 350Africa.org, Edwin Mumbere of the Center for Citizens Conserving (CECIC) and Evelyn Acham of the Rise Up Movement The East African Crude Oil Pipeline (EACOP) is expected to reach a Final Investment Decision (FID) ) as soon as the end of March 2021.This will pave way\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":9105,"url":"https:\/\/www.oilnewskenya.com\/index.php\/uganda-tanzania-total-sign-host-government-agreement-for-the-eacop-project\/","url_meta":{"origin":10255,"position":2},"title":"Uganda, Tanzania  &#038; Total Sign Host Government Agreement for the EACOP Project","author":"","date":"September 14, 2020","format":false,"excerpt":"The president of Uganda H.E. Yoweri Kaguta Museveni and his Tanzanian counterpart H.E. John Pombe Magufuli have agreed in principle to fast track the implementation of the East African Crude Oil Pipeline (EACOP) project in a bilateral meeting held in Chato, Tanzania. 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Pipeline-EACOP) is back on track. Following this agreement, all suspended project tenders are expected to be re-launched (Call for tender re-launch) by September\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":5982,"url":"https:\/\/www.oilnewskenya.com\/index.php\/uganda-tanzania-sign-east-africa-crude-oil-pipeline-agreement-eacop\/","url_meta":{"origin":10255,"position":5},"title":"Uganda, Tanzania Sign East Africa Crude Oil Pipeline Agreement (EACOP)","author":"","date":"May 22, 2017","format":false,"excerpt":"President Museveni and President Magufuli have signed the East African Crude Oil Pipe Line Agreement(EACOP) as an expression of intent to go ahead with the construction of the1400km oil pipe line from Hoima to Tanga port. This was followed bilateral talks between both parties at State House, Dar-es-alaam where they\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/05\/EACOP.jpg?fit=960%2C796&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/05\/EACOP.jpg?fit=960%2C796&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/05\/EACOP.jpg?fit=960%2C796&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/05\/EACOP.jpg?fit=960%2C796&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/10255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=10255"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/10255\/revisions"}],"predecessor-version":[{"id":10256,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/10255\/revisions\/10256"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=10255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=10255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=10255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}