By Francis Jjunju
22nd March 2023
The French oil major TotalEnergies is committed to extracting Uganda’s oil despite concerns by climate activists, the company’s Chief Executive Patrick Pouyanne has re-affirmed.
The company has been under intense pressure to abandon the East African Crude Oil pipeline project as well as the Tilenga development project in the Albertine.
Pouyanne however said oil projects in Uganda, the Middle East, and Brazil will continue but in accordance with the firm’s climate action commitment.
Pouyanne address on Tuesday coincided with the launch of the company’s Sustainability & Climate –2023 Progress Report.
The report outlines TotalEnergies progress in its transformation strategy and the update on its climate ambition.
TotalEnergies committed to investing $13-15 billion per year for 2022-25.
It plans to allocate 50% of those investments to grow its activities and 50% to maintain the base of its activities, 50% of the growth investments will be dedicated to the development of new energies, mainly renewable and electricity, and the other 50% to natural gas, essentially LNG.
The company has supported 94% of compensation agreements in Tilenga and already 85% have been paid out as of December 2022, and 775 of the households chose to be re-housed in newly constructed homes nearby the pipeline project of which 205 houses have been delivered by the beginning of March 2023.
The company said nearly 80,000 direct and indirect jobs will be created during the construction phase of EACOP and nearly $2 billion in contracts will be awarded to local businesses.
Forty-two thousand direct and indirect jobs are expected during the operational phase of the pipeline.