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EACOP Will Be A Model Project On All Counts- Cheick-Omar Diallo, TotalEnergies Spokesperson

October 06, 2022

By Ajong Mbapndah L [caption id="attachment_101159" align="alignnone" width="640"] Cheick-Omar Diallo says the project will be a model for transparency, shared prosperity, economic and social progress, sustainable development, and environmental accountability[/caption] In Uganda and Tanzania, where more than 20% of the population lives on less than $2 a day ($55 a month), the Tilenga and EACOP projects will have a very significant impact on economic development, says Cheick-Omar Diallo, TotalEnergies spokesperson for Tilenga and EACOP. Speaking in an interview with PAV, Cheick-Omar Diallo says TotalEnergies is fully aware of what the project represents for both countries. At TotalEnergies, we are doing everything we can to make it an exemplary project in terms of transparency, shared prosperity, economic and social progress, sustainable development, environmental accountability, and respect for human rights, says Cheick -Omar Diallo. “We are fully aware of the sensitive environment in which we are operating and the challenges that it represents. TotalEnergies has pledged, with the local communities and under the monitoring of independent organizations, to implement action plans that will produce a net positive impact on biodiversity as part of the Tilenga project. The Avoid - Reduce - Compensate principle is being strictly applied throughout the project, the spokesperson said. This is Uganda’s first oil development project, and it could not be entrusted to any company. Uganda and Tanzania called on TotalEnergies for this purpose, a Company which implements the strictest social and environmental standard to harness their resources, Cheick-Omar Diallo said. Thanks for accepting to grant this interview on for those who do not understand, could we start with insight into the EACOP project and its importance? Uganda and Tanzania are sovereign states that have made the strategic choice to tap their natural resources. The first project developed is based on the production of oil in Uganda. Two main fields will be developed: Tilenga operated by TotalEnergies (190 000 barrels of oil per day) and KingFisher, operated by a Chinese company, CNOOC, (40 000 barrels of oil per day). The capex that will be invested for Tilenga is about 4,5B$. TotalEnergies owns 57% of Tilenga project, COOC, 28% and UNOC (Uganda National Oil Company), 15% Because Uganda is landlocked, the oil produced by Tilenga will be shipped via pipeline to the Tanzanian port of Tanga. This is the EACOP project. The entire pipeline (1,443-kilometers) will be buried. Besides, let me insist on the fact that the pipeline will not be visible since 80% of the surface area will return to its natural state. In this project, TotalEnergies owns a 62% interest, CNOOC 8%, UNOC 15% and TPDC 15%. The amount of the capex invested in is around 4B$. May we know the importance of this project to Uganda and Tanzania, how could the development fortunes of both countries be impacted with the successful implementation of the project? The Lake Albert resources development projects, including Kingfisher project, will represent a total investment of approximately $10 billion. With almost $2 billion in investment attributed to local firms, the Tilenga and EACOP projects will create close to 80,000 direct and indirect jobs. Unleashing these resources will have a very significant impact on economic development in Uganda and Tanzania, where more than 20% of the population lives on less than $2 a day ($55 a month). For example, the GDP of Uganda may increase of 3% per year for about 20 years. What guarantees are there that the lofty potentials been projected will be met and what measures were taken to ensure protection of the interests of the local population? Tilenga and EACOP will significantly improve the living conditions of the inhabitants and have already begun to do so with the compensation system that has been set up for example. The compensation policies have allowed some people to buy land or homes of better quality. In addition to these payments, there are training policies, a livelihood restoration program and measures to promote employment, education and respect for women’s rights. Locally you can already see the benefits of the Lake Albert resources development projects, regarding the infrastructures such as the roads, that have been built for example. Regarding the countries, the leases obtained by TotalEnergies are governed by contracts with the two states that comply with international regulations. The royalties due from TotalEnergies will be paid to the Ugandan and Tanzanian governments. In the current international environment, we have no doubt that they will be vigilant about how these new revenues are used and that the funds will enable the countries' economic and social development. If I may add, supported by TotalEnergies, Uganda was also admitted to the EITI in August 2020 as a Candidate country and published its first report in May 2022. This is an important commitment. By promoting transparency in government-company relations, the EITI aims to strengthen government and company systems, inform public opinion and thereby increase confidence in the probity of activities in the oil, gas and mineral sectors. From the conception to the implementation, may we know the timeline or the estimated timeframe TotalEnergies and its partners had in mind for the full benefits of the project to be felt in Uganda and Tanzania? As mentioned previously, during the construction phase, the personnel requirements will be very high, around 80,000. This phase will end around the year 2025. On average, over 94% of the Company's employees, contractors and subcontractors are nationals and we continue to mobilize more staff to support our operations. However, during the production phase, 1,200 direct jobs and 3,000 indirect jobs will still be needed to ensure the smooth running of the projects. Many Ugandans and Tanzanians trained by TotalEnergies will then be able to participate in other construction or drilling projects. For example, Uganda will continue its economic development and will need skilled and trained workers and managers. The country wants to develop the oil business and will be able to draw on a pool of trained and qualified personnel. Could you tell us what measures were taken into consideration to protect or address environmental concerns raised by activists? We are fully aware of the sensitive environment in which we are operating and the challenges that it represents. TotalEnergies has pledged, with the local communities and under the monitoring of independent organizations, to implement action plans that will produce a net positive impact on biodiversity as part of the Tilenga project. The Avoid - Reduce - Compensate principle is being strictly applied throughout the project. TotalEnergies isn't stopping there: the Company has chosen to develop additional measures to promote biodiversity, such as restoring forest continuity to preserve the chimpanzee habitat in the Hoima region (around 1,000 hectares of restored forest, allowing the chimpanzees to move freely, 10,000 hectares of preserved forest and 63,000 hectares in protected forested areas), and developing a program to reintroduce the black rhinoceros. As for EACOP, the pipeline route was defined to minimize its environmental impact and avoid sensitive areas as much as possible. The full length of the pipeline will be buried and replanted after installation. The pipeline does not cross either of the two lakes that are vital water resources at any point. Similarly, it does not run through any IUCN protected areas (categories I through IV) or Ramsar sites. In addition, TotalEnergies is deploying innovations to enhance the pipeline's safety and integrity. TotalEnergies will ensure surveillance beforehand and continuously during operation, notably with an optical fiber system installed along the pipeline. Activists and some concerned groups have painted a very bleak picture of environmental consequences if the project was allowed to move forward, from the perspective of TotalEnergies and its partners, are these concerns real or more of fiction? As mentioned previously, the development of Lake Albert resources is a major project for Uganda and Tanzania, and our ambition is to make it an exemplary project in terms of shared prosperity and sustainable development. We are fully aware of the important social and environmental challenges it represents. The Tilenga project and EACOP underwent an Environmental and Social Impact Assessment (ESIA) in accordance with Ugandan and Tanzanian laws and international best practices (The World Bank's 2012 Performance Standards -IFC). This assessment identified the potential environmental and social impacts of the project and proposed mitigation measures. For example, 426 wells will be drilled but they will be grouped together at a limited number of locations. They are designed to be as compact as possible to reduce their footprint and minimize their visual impact. This is a far cry from 20th century oil field clichés. Techniques have evolved greatly. The wells in the portion located in Murchison Falls National Park will be virtually invisible to tourists. Their footprint represents less than 0.03% of the park's total surface area. This represents 1.2 km2 out of 3900 km2. As for EACOP, the risk of water pollution from the EACOP has been taken into consideration and also seismic issues. The pipeline will be buried and about 80% of the surface area will return to its natural state. It won’t be visible. Here too, the reality is far removed from the images some have given of landscape-disfiguring infrastructure. [caption id="attachment_101160" align="alignnone" width="800"] .L-R Total CEO Patrick Pouyanné, Tanzanian President Samia Suluhu Hassan and Ugandan President Yoweri Museveni-Photo courtesy[/caption] What is your reaction to the decision of the European parliament to recognize the disastrous consequences for both human rights and the climate due to the construction of Total East African Crude Oil Pipeline? How does this decision impact the resolve or the desire of TotalEnergies and its partners to move forward with the project? TotalEnergies reiterates that this project is major for Uganda and Tanzania and that we are doing everything we can to make it an exemplary project in terms of transparency, shared prosperity, economic and social progress, sustainable development, environmental accountability, and respect for human rights. Some two hundred and sixty community groups from Uganda, Tanzania and other African countries, along with international organizations, are pushing #StopEACOP – a global campaign to halt the project, what is the strategy from TotalEnergies to counter their narrative? During the latest General Assembly of our Company, Patrick Pouyanné, our CEO, invited those who want to go and see what really happens on the ground in Uganda. That’s what we have done since June, showing the reality of the field, go and meet the local populations. We have noticed that some people did not have the complete picture of the situation. So, it is a transparency exercise we are committed to in order to show the world how we manage our operations. As we wrap up this interview any last word to those who may be skeptical about TotalEnergies living up to expectations on the project and its  potential to be a game changer for Uganda and Tanzania? Uganda and Tanzania are sovereign states that have made the strategic choice to tap their natural resources. This is Uganda’s first oil development project, and it could not be entrusted to any company. Uganda and Tanzania called on TotalEnergies for this purpose, a Company which implements the strictest social and environmental standard to harness their resources. *Culled from September Issue Of PAV Magazine

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