French energy giant Total on Monday detailed steps it would take to mitigate the environmental and human impact from its Tilenga project in Uganda and a multibillion-dollar pipeline carrying oil from the country to Tanzania.
Total and its partner China National Offshore Oil Corporation plan to exploit oil reserves in Lake Albert in Uganda and construct a $3.5 billion East African Crude Oil Pipeline (EACOP) to neighbouring Tanzania for export.
Environmental groups claim that the pipeline will threaten local communities, water supplies and biodiversity in both countries.
But Total allayed such fears on Monday, saying it would voluntarily limit the Tilenga project's footprint within Uganda's Murchison Falls Park.
While current permits cover nearly 10 percent of the park, development will be limited to less than 1 percent of its surface area, and undeveloped regions will be voluntarily relinquished without delay, the statement said.
Total will provide support to increase by 50 percent the number of rangers ensuring the preservation of Murchison Falls Park, and support a programme to reintroduce the black rhinoceros in Uganda in partnership with the Uganda Wildlife Authority.
It said it would also work closely with The International Union for Conservation of Nature to protect chimpanzees, particularly by promoting the conservation of forest habitats.
The Tilenga and EACOP projects require the acquisition of 6,400 hectares of land, on which the primary residences of 723 households are located.
Each of these households will be given the choice between a new house or monetary compensation. The first 29 households, residing on the Tilenga Central Processing Facility site, have all elected to receive a new house, Total said.
Upon its completion, the 1,443km pipeline will transport crude oil from Uganda to the Indian Ocean Coast in Tanzania. The construction of the pipeline will lead to a substantial rise in Foreign Direct Investment (FDI) for both countries.
The 8tri/- investment capital associated with the construction and operation of the Pipeline will be directly injected into the economies of Uganda, and Tanzania increasing their FDI by over 60 percent during the construction phase.
The project will be constructed and operated through a pipeline company with shareholding from the Uganda National Oil Company (UNOC), Tanzania Petroleum Development Corporation (TPDC), and the two oil companies, TOTAL and CNOOC.
The project will contribute towards the enhancement of the central corridor between Uganda and Tanzania through the development of new infrastructure, logistics, technology transfer and the improvement of the livelihoods of East Africans.
The pipeline will create short term employment for both highly skilled and, semi-skilled professionals, and casual laborers. It is expected that casual workers who will be involved in the construction phase of the project will be sourced locally from each district, thus promoting the development of local capacity to develop other pipeline projects in the region.
The pipeline will also provide business opportunities for the different sectors of the economy involved in the pipeline design, construction, and operation and decommissioning of the project, and create a trickle down economic effect spurring the development of local content.