20 NEW VISION, Tuesday, April 9, 2019 OIL & GAS NEW VISION, Tuesday, April 9, 2019 29 Pipeline route out, affected sub-counties listed

By Martin Kitubi

The long-awaited actual route for the East African Crude Oil Pipeline (EACOP) has been revealed as the oil sector moves closer to signing two Final Investment T Decisions (FID) for the pipeline and oil refinery. The signing of the FIDs is expected to signal the start of the construction of two structures for oil production in . According to a route map for the all the $7XOORZ2LOoHOGVXSHUYLVRUDW.DVHPHQH2LO)LHOGLQ%XOLLVD oil projects which New Vision has obtained, UHFHQWO\,QWKHEDFNJURXQGDUHVWRUDJHIDFLOLWLHVIRUWHVWFUXGHRLO about 25 sub-counties from 10 districts are going to be affected by the project. The pipeline host districts include , Kikuube, , Kyankwanzi, Mubende, *RYWoQGVEX\HUIRUWHVWFUXGHRLO Gomba, Sembabule, Lwengo, and . By Vision Reporter Kasita said UNOC will only The affected sub-counties per district issue a report on how the deal include Buseruka and Kigorobya sub- From a distance along the was handled in detail, which will counties in , Kiziranfumbi, bumpy and dusty Hoima-Buliisa be read by the energy minister, Buhimba and Bugambe in , $ERXWNPRIWKH road, white storage containers Irene Muloni. Kiryanga, Mpasaana and Nkooko in “ can be seen down in the valley According to Oil Price chart by and Gayaza sub-county SLSHOLQHZLOOEHKRVWHG as one draws nearer to the Business Insider.com, the price in . The others are Kasemene Oil Fields in the of crude oil on international Butoloogo, Madudu and Kitenga in Mubende LQ8JDQGDZKHUHDVWKH Albertine region. market stands at $69.21 district and Maddu sub-county in Gomba UHPDLQLQJNPLQ These are storage tanks for (sh250,000) and that it has district. the test crude, whose sale EHHQpXFWXDWLQJEHWZHHQ In Sembabule, the EACOP will traverse 7DQ]DQLD has dragged for several years and $69.30. Lugusulu, Sembabule town council, Mijwala VLQFHWKHoUVWELGIRUWKHPZDV If sold, according to the and Lwebitakuli sub-counties, whereas in announced. The oil has been in prevailing price by Oil Price Lwengo, it will traverse Lwengo town council, store since 2010. Chart, Uganda will generate Ndagwe and Lwengo sub-counties. However, the Uganda National about $3.12m (sh11.7b). In Rakai, the pipeline is expected to pass Oil Company (UNOC), which through Nabisagasa, Kasaali, Lwanda, Kasasa is the custodian of crude oil, 3URFHVVGHOD\HG and Kifamba sub-counties, whereas in has announced that a buyer While the Government made the , it will traverse Kakuuto and KDVoQDOO\EHHQLGHQWLoHG oUVWSURQRXQFHPHQWVWRVHOOWKH Kyotera sub-counties. According to UNOC, the test crude in 2015, there were A source at the energy ministry, who contract will be concluded in reports that initial attempts to spoke on condition of anonymity said: “We June. sell were made as far back as have details on the sub-counties and all the UNOC says these are some of 2012. villages which we will give later.” the 45,211 barrels of test crude Last year, Peter Muliisa, the However, the map highlights only a few kept in different locations. chief legal and corporate affairs villages that include Kiziranfumbi, Kidoma, The storage places include RIoFHUDW812&UHYHDOHGWKDW Munteme in Kikuube district, Kasambya, Kasemene 1, Ngiri 2 and Ngara ELGGHUVLQWKHoUVWELGGLQJ Kyekadu, Mpasana in Kakumiro and 1 in and Tangi process failed to make the Nankadula in Kyankwanzi. Camp in Nwoya. minimum requirements. The crude was extracted Muliisa also said bidders had ($&23UHSRUW during the appraisal period of failed to present satisfactory A recent report by the developers indicated oil and gas. crude oil utilisation plans. that a total of 179 villages from 10 host $FFRUGLQJWRWKHURXWH A barrel of oil is equivalent According to Muliisa, they districts will be affected by the project. “ to 158.987 litres, which means also failed to demonstrate the The developers include Total E&P, Tullow PDS0XEHQGHZLOO Uganda currently has about 7.2 quality of health, safety and Oil, China National Offshore Oil Corporation :RUNHUVOD\LQJDQRLOSLSHOLQH7KH(DVW$IULFDQ&UXGH2LO3LSHOLQHURXWHKDVEHHQUHYHDOHGDQGFRQVWUXFWLRQRILQIUDVWUXFWXUHZLOOVRRQVWDUW million litres of test crude in the environment management (CNOOC) and Uganda National Oil KDYHWKHPRVWDIIHFWHG containers. measures. Company (UNOC) through joint ventures. YLOODJHVIROORZHG installations. There will be six pumping “We are still in discussions with other 1,147km will be in Tanzania. Initially, the crude oil In 2018, UNOC announced The Resettlement Action Plans (RAPs) for stations with crude bulk heaters and power stakeholders and the decision will be In Tanzania, the EACOP will traverse eight extracted from the ground by another bidding process for the EACOP, indicate that over 4,000 people will E\6HPEDEXOH generators, according to UNOC. agreed upon with the relevant Government regions, including , Geita, Shinyanga, Tullow Oil during the appraisal same test crude. be affected. The oil pipeline will also have two pressure representatives in Tanzania and Uganda,” Tabora, Singida, Dodoma, Manyara, Tanga SHULRGLQZDVVLPSO\pDUHG According to the roadmap for The RAP document indicates that Mubende .DNXPLURZKLOH reduction stations, 53 block value stations Ibrahim Kasita, who is in charge of and 25 districts. or burnt. This, however, was the second bidding that was will have the most affected villages; 33, and 23 heating stations. corporate affairs at UNOC, said. The pipeline will also have six pumping stopped after environmentalists published in New Vision, the followed by Sembabule 19, Kakumiro, 25, .LNXXEHDQG.\RWHUD The pipeline will have other facilities, Kasita said activities such as planting stations, two pressure reduction stations and piled pressure on the process was opened on January while Kikuube and Kyotera will each have 20 ZLOOHDFKKDYH such as access roads, booster stations and deep-rooted trees and construction of a marine export terminal at Tanga. Government, saying it was an 25, 2018 and was expected to villages affected. compression stations to maintain the pipeline structures will not be allowed within a 10 The pipeline will be electrically heated environment hazard. close on March 9, 2018. Lwengo will have 19 affected villages, while YLOODJHVDIIHFWHG pressure at regular intervals. metre pipeline corridor during the operation because of the nature of Uganda’s crude oil. “We are in negotiations with The evaluation process Rakai has 17 and Kyankwanzi eight. It will be buried to minimise impact on the of the pipeline. The energy ministry says crude oil is WKHoQDOEX\HU:HDUHKRSHIXO was supposed to kick off on Hoima and Gomba have the least affected environment. Some facilities on the pipeline He added that vehicles access will be viscous and waxy in nature and requires that we will sign the deal this March 12 to 23 in 2018. villages under the pipeline project, one and which will remain are also above the ground, allowed at existing roads in the area and shipping at a minimum temperature of 50 oQDQFLDO\HDU  y The display and four villages respectively. designed to ensure minimal environmental that no access will be allowed into the degrees centigrade for it flow. said Ibrahim Kasita, the UNOC communication of the best The report also cited a number of and social impacts, according to UNOC. permanent Above the Ground Installations To maintain the operating temperatures, RIoFHULQFKDUJHRIFRUSRUDWH evaluated bidder ran from challenges encountered in the processes The infrastructure that will be above the (AGIs) sites. He said restrictions are some the pipeline will be electrically heated along affairs. March to April 2018. of acquiring land, which include, but not ground will include pumping stations, of the issues that the EACOP team has the entire route to Tanzania, making it the However, Kasita declined to The process was to be followed limited to the fact that people do not have electronic heat tracing station, marine storage sensitised people about to avoid conflicts longest heated pipeline in the world. The give details of the negotiations, by a contract ward and UNOC letters of administration for the property. facility and offloading facility. during operationalisation. energy ministry says transporting the crude including how much Uganda had promised to make the The report stressed that this is likely oil by pipeline is safer, more reliable and is likely to earn from the deal, pronouncement on April 27, to cause a crisis, especially during 5HVWULFWLRQVRQWKHSLSHOLQH )DFWVRQ($&23 environmentally friendly than rail or road saying “It will be communicated 2018, but this never came. compensation to pave the way for the project. The Uganda National Oil Company (UNOC), The East African Crude Oil Pipeline is a transport. E\WKHHQHUJ\PLQLVWU\y Kasita defended the delay to The preliminary report indicated that most 812&jV,EUDKLP.DVLWD which is a joint partner in the development 1,443km crude oil export infrastructure Transportation by road or rail, would be “Since the crude oil is an asset announce successful bidders, of the people hold mailo land titles and that of the pipeline, has revealed that there that will transport Uganda’s crude oil from significantly more expensive and risky than RIWKH*RYHUQPHQWy.DVLWD saying it gave UNOC time to the mailo land system is complex, with one very large to the extent of 2-5 square will be restricted activities near the crude Hoima in Uganda to Chongoleani peninsula the pipeline, according to the ministry. said, “the energy ministry will evaluate bidders to ensure that title having several owners and squatters at kilometres,” a section of the report reads. pipeline area. near Tanga in Tanzania. Both road and rail would be viable for small PDNHWKHoQDODQQRXQFHPHQWRI Uganda would get a better deal. the same time. However, UNOC noted that the restrictions The route will connect Uganda’s crude to volumes of oil. It would require more than the deal, including the amount “Once the deal is signed by “The mailo land is complex with one piece )HDWXUHVRIWKHSLSHOLQH on the type of activities within the 10 metre the Tanga port to international markets. 2,000 heated trucks per day to transport of money Uganda would have relevant authorities, details will having landlords, Kibanja and licensees The pipeline, which is dubbed “unique”, Operating Right of Way (ROW) for the About 296km of the pipeline will be crude oil from Uganda to Tanzania, according obtained from the cache. EHDYDLOHGy.DVLWDVDLG at the same time. Most of the titles are is expected to have a number of ground pipeline is still under discussion. hosted in Uganda whereas the remaining to the ministry.