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Zawya
14-07-2025
- Business
- Zawya
After $3.6bln spend, Uganda-Tanzania pipeline enters last ‘12-month sprint'
A string of 24-inch pipes stretches across a 75 kilometres from the Waiga River, half a kilometre from Butiaba port, on Lake Albert, to kilometre-Zero at the Kabalega Industrial Park. By end of this year, no pipes should be visible, only an improvised road and regenerating bush. The pipes will be buried, marking the crucial link between Pump Station 1 (PS-1) of the East African Crude Oil Pipeline (Eacop) and Uganda's flagship upstream project, Tilenga, a 190,000 barrels per day oilfield. About 200 kilometres southwest of Tilenga, the Chinese-managed Kingfisher oilfield, a 40,000 bpd project, is at least six months ahead of the TotalEnergies-operated project. Except for a section that connects to PS-1, its 50 kilometres feeder pipeline on the shores of Lake Albert, is 95 percent complete – and buried. During a tour of the sites this week, Eacop engineers told The EastAfrican that the project is entering a 12-month sprint, during which the contractor should complete all the pipeline and all support infrastructure, to launch Uganda into the oil exporters' club in the second half of 2026. A series of setbacks and delays that have forced Uganda to push back its production timelines, and first oil sale next year could come exactly two decades after the East African nation discovered 6.5 billion barrels of commercially viable reserves in the Albertine Graben. That means once civil works are finished, everything else will move faster.'Wafta's projection echoes the prognosis by Eacop managing director Guillaume Dulout earlier this year that Uganda's oil will flow from Hoima to Tanga in 2026. He said the timelines for PS-1, which sits on 182,000 square metres at Kabalega Industrial Park (KIP) in Hoima District. Next month, piping is expected to start, with installation of IT equipment to follow in September, and pre-commissioning to begin in March or April next year. Pump Station One, a key component of the pipeline project is by far the biggest of all the stations, as it will house metering equipment, processing and utility areas. Here, the quantity of crude from Tilenga and Kingfisher will be measured and comingled. A 40-tonne pump will then move the crude under pressure for the next 180 kilometres before another pump at Sembabule injects more pressure to drive the oil onward and beyond the Uganda-Tanzania border. Eacop contractor China Petroleum Pipeline Engineering Co Ltd, or CPP, says in many engineering aspects, the 296 kilometres section in Uganda – which in project execution is identified as Lot-1 – is ahead of Tanzania, although PS-1 is at the same level of progress as PS-4 and PS-5, both in Tanzania. With a total spend of $3.6 billion so far, the project is entering a critical phase. But the contractor admits that it isn't the home stretch yet, as a few topographical challenges lie ahead. Pipe bending is one of those aspects. The 1443 kilometres pipeline traverses uneven terrain, 600 crossings of wetlands, rivers and roads, as well as maximum elevation of 1,532 metres and 1,738 metres above sea level in Uganda and Tanzania respectively, according to the project design. Due this, the contractor has thousands of pipes to bend to meet design and delivery timelines where they are to be strung, welded and buried. These are thermally insulated 24-inch, 18m-long steel pipes, of varying thickness ranging from 10.5mm to 23mm.'Up to now we have performed 500 bends [but] we still have many more to do,' said Shafiq Mohamad, mechanical quality control engineer at Kasambya in Kakumiro District. This is equivalent to nine kilometres of the pipeline.'The profile of the pipeline is not yet finalised. We have 2,000-3,000 bends to do in Lot-1 because Uganda is more elevated than Tanzania.'Read: Uganda's funding headache for Eacop, SGR projectsDespite the historic announcement of the final investment decision (FID) on February 1, 2022 for $10 billion to finance development of the oilfields and support infrastructure in the three Lake Albert oil projects, upstream has raced ahead of Eacop, after the latter was held back by local and international activists. As external funding delays threatened to stall the project, TotalEnergies – the 62 percent shareholder in the pipeline – along with partners Uganda National Oil Company, Tanzania Petroleum Development Corporation and China National Offshore Oil Corporation (Cnooc) moved to fork out additional funding, which took equity financing above the share for project loans. In March this year, Eacop got a shot in the arm after reaching the long-awaited financial close for $1 billion via a syndicated loan from local and regional lenders Stanbic Bank, KCB Bank, Standard Bank, Afriexim Bank, and the Islamic Corporation for the Development of the Private Sector.'We are on schedule for Tilenga feeder pipeline to be buried by end of this year,' said Moses Kirumira, Eacop deputy construction engineer for Lot-1. 'The only challenge is Waiga River, where we've done topographical studies to determine wettability. Other than that, and maybe the rains, we don't anticipate any serious challenge.' © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Al Jazeera
17-06-2025
- Politics
- Al Jazeera
Are commercial interests driving Uganda's military operations in DR Congo?
Kampala, Uganda – It was June 5 when Ugandan soldiers arrived in Kasenyi, a town on the shores of Lake Albert in Ituri province in eastern Democratic Republic of the Congo (DRC). Uganda's army chief, General Muhoozi Kainerugaba, posted a video on X showing what he said were residents 'enthusiastically' welcoming the soldiers, as Chris Magezi, an aide to Kainerugaba and at the time acting spokesperson for Uganda's People's Defence Forces (UPDF) said the army had 'occupied' it together with another Congolese town, Tchomia. When Kampala first deployed troops to eastern DRC in November 2021, they were in pursuit of the Allied Democratic Forces (ADF), a rebel group with Ugandan roots whose strongholds were located in Beni territory, in DRC's North Kivu province. The group initially fought against the Ugandan government in pursuit of regime change, but from the 2010s onwards, it began aligning itself with the Islamic State Central Africa Province. In Uganda, the government accused the ADF of being behind several high-profile assassinations, while both countries blamed it for massacring civilians. In 2021, during that first joint military operation between the Ugandan and Congolese armies, towns like Kasenyi remained unaffected. But today, the Ugandan army's footprint has expanded well beyond its original mission and into Ituri, by its own admission. This is despite the fact that the ADF, which has since dispersed and relocated far from its traditional bases, is not active in Kasenyi or other areas where the military has recently been operating, observers note. In a statement in February, General Kainerugaba declared that Uganda would secure the entire border it shares with DRC: 'That is our sphere of influence. Nothing will happen there without our permission,' he said on X. On social media, Kainerugaba has frequently inserted himself into conversations about internal conflicts and the regional dynamics of the Congolese crisis. He has openly expressed support for the M23 rebel group that has made rapid advancements in eastern DRC this year, seizing control of the capital cities of both North and South Kivu provinces. M23 is reportedly backed by Rwanda and Uganda, according to various United Nations reports, though both countries have denied these allegations. The expansion of the Ugandan army's area of operation reflects Kampala's shifting priorities in eastern DRC, according to army spokesperson Felix Kulayigye. He said the army is protecting Congolese communities as well as Uganda's economic interests in the neighbouring country. 'Who is consuming Uganda's products? Can commerce take place where there is instability? If we have commercial interests in eastern DRC, are those protectable or not?' Kulayigye told Al Jazeera. From the start, Uganda's military presence in DRC has carried an economic subtext. According to a 2023 report by Deutsche Welle, as part of the agreement with the Kinshasa government to combat the ADF, Uganda was granted permission to build tarmac roads connecting key towns in DRC – routes designed to boost the movement of goods and deepen Uganda's trade footprint in the region. Although the text of the agreement was not released to the public, Ugandan soldiers, military equipment and road construction equipment entered all entered DRC in November 2021. Solomon Asiimwe, an international relations lecturer at Nkumba University in Kampala, says although Uganda's pursuit of the ADF may have appeared to be security-driven, the overriding factor was economic, though this was 'hidden under the carpet'. While some Congolese may be angered by Uganda's expanded deployment, he suggests they should also consider the benefit of a steady supply of goods from Uganda. 'Even Congolese have interests in supplying minerals to Uganda; they benefit from infrastructure and peace,' he said. Eastern DRC's market has become a battleground of its own. A recent analysis by The East African valued regional exports to the DRC at $2.9bn over nearly three years, with Uganda commanding a 68 percent share. Kenyan financial institutions have also staked their claim, entering DRC through bank acquisitions and the market was highly profitable – until M23's advance this year halted their expansion. But this trade has a dark side. Over the years, analysts and UN reports have accused both Uganda and Rwanda of acting as conduits for smuggled Congolese minerals and agricultural products such as cocoa and coffee. The International Court of Justice in 2022 ordered Uganda to pay the DRC $325m in reparations for the illegal exploitation of natural resources during its military presence in eastern DRC between 1998 and 2003; Kampala has paid several instalments since. Analysts argue that mineral exploitation is visible in export data of these countries: for instance, Uganda's gold exports reached $3bn in 2024, despite the country lacking any significant large-scale gold deposits. Ugandan army spokesperson Kulayigye said his country's expanded deployment in Ituri was requested by Congolese authorities seeking help in fighting other armed groups destabilising the province. 'We had an additional mission at the request of Congolese authorities to deal with negative elements within Ituri,' he said. Al Jazeera reached out to Congolese government spokesperson Patrick Muyaya to respond to this claim, but he did not reply to our questions at the time of publication. Meanwhile, Congolese experts were sceptical, questioning both the legality and legitimacy of Uganda's expanded mission. 'Uganda doesn't have an agreement with the Congolese army to be in some parts of Ituri,' said Reagan Miviri, a conflict researcher at Ebuteli, a Kinshasa-based think tank. 'They entered Congolese soil without permission. This is a violation of Congolese sovereignty.' According to Miviri, Kinshasa has been silent on Uganda's expanded operation, not because of approval but because it doesn't want to have to confront both Uganda and Rwanda at the same time. But he admits that in many areas where Uganda has deployed, it has more presence than the Congolese army. Kambale Musavuli, a Congolese political analyst, calls Uganda's growing military presence an occupation – one that 'should alarm every Congolese and African who believes in sovereignty and territorial integrity'. In response to criticism from analysts, Kulayigye said he was 'disappointed by intellectuals' who sit in comfort talking about nothing, while on the ground, 'people are dying at the hands of militias'. For Congolese observers, Uganda's behaviour follows a historical script. From 1996 to 2003, Uganda and Rwanda intervened heavily in DRC, initially backing the rebel group that overthrew longtime dictator Mobutu Sese Seko and installed Laurent Kabila – only to later turn against him. Both countries subsequently supported various rebel factions attempting to oust Kabila. Though international pressure forced Uganda and Rwanda to formally withdraw at the beginning of the century, both nations maintained ties to rebel groups, including M23, which was born out of the unresolved issues of the 1990s Congo wars. In January and February this year, M23 captured key cities including Goma and Bukavu in eastern DRC, which they still hold. The UN accused Rwanda of deploying up to 4,000 Rwandan soldiers in the DRC, which helped rebels capture the cities, while Uganda has been accused of allowing M23 to get supplies and recruits through its territory. 'It's a continuation of a pattern we have seen for decades, where neighbouring countries exploit instability in eastern Congo to pursue military and economic interests under the guise of security operations,' said Musavuli. In the aftermath of the Congo wars, several reports emerged, including from the UN, that Rwanda and Uganda were targeting Hutu civilians and looting and smuggling resources like coffee, diamonds, timber and coltan from the DRC. Josaphat Musamba, a Congolese researcher at Ghent University in Belgium, sees direct links between today's conflicts and the wars of the 1990s in a cast of characters that remains strikingly familiar: Uganda's President Yoweri Museveni, Rwanda's President Paul Kagame and former Congolese President Joseph Kabila – who is now based in Goma, an area under M23 control – were key players in those earlier conflicts. 'If you look at [today's M23] commanders, you can connect them to those who were fighting in the First Congo War,' Musamba said. 'All of them were working with Rwandan officers like James Kabarebe. I know two or three commanders of M23, and one of them was part of James Kabarebe's bodyguard,' he claimed. Kabarebe, now Rwanda's state minister for regional integration, was a central figure in the rebellion that toppled Mobutu. He later served as army chief of staff under Laurent Kabila, the former Congolese leader and father of Joseph Kabila. Kabarebe was sanctioned by the US government for being 'central to Rwanda's support for the March 23 [M23]'. Researchers also note that after M23's first rebellion in the DRC failed in 2012-2013, many rebels fled across the borders to Rwanda and Uganda. Congolese researchers say that while Kampala and Kigali may claim to be addressing security threats and rebel groups in eastern DRC – like ADF and the Democratic Forces for the Liberation of Rwanda (FDLR), whose remnants were linked to the 1994 genocide in Rwanda – they are effectively carving out zones of control and economic exploitation in eastern DRC, just as they did in the 1990s. The Congolese people, meanwhile, remain displaced, impoverished and without security. The UN said in April that renewed fighting with M23 this year had displaced nearly four million people in North and South Kivu alone. 'I don't believe that Uganda [soldiers] have good intentions, especially in the operation in Ituri,' said Miviri. 'I don't understand why they are there.'
Free Malaysia Today
05-06-2025
- Business
- Free Malaysia Today
Uganda takes control of 2 DRC towns
Rwanda backs the M23 armed group that has taken huge swathes of the mineral-rich eastern DRC in recent months. (EPA Images pic) NAIROBI : The Ugandan army said today it had taken control of the Democratic Republic of Congo towns of Kasenyi and Tchomia to 'prevent inter-ethnic fighting'. While Rwanda backs the M23 armed group that has taken huge swathes of the mineral-rich eastern DRC in recent months, neighbouring Uganda has played a more complex role. Uganda has worked alongside the DRC government to fight Islamist insurgents in the region. But analysts say it is also keen to secure economic advantages, including control of Congolese gold mines and wider trade. Chris Magezi, spokesman for the Uganda people's defence forces (UPDF), posted a video on X saying it showed 'UPDF troops being welcomed in Kasenyi, DRC, today'. 'We occupied it and Tchomia today to prevent inter-ethnic fighting and to protect the population,' he added. Both are towns in DRC's Ituri province, on the vast Lake Albert that separates Uganda and DRC and is the site of a massive oil exploration project being constructed by Uganda with French firm TotalEnergies and the China National Offshore Oil Corporation. In February, Uganda said it had 'taken control' of security in the Ituri provincial capital, Bunia.
CTV News
30-05-2025
- Business
- CTV News
Oil price outlook weakens on OPEC+ hikes, lingering trade concerns: poll
A Ugandan worker descends stairs on the drilling rig at the Kingfisher oil field on the shores of Lake Albert in the Kikuube district of western Uganda Tuesday, Jan. 24, 2023. (AP Photo/Hajarah Nalwadda) Analysts have revised down their oil price forecasts for the third consecutive month as swelling OPEC+ supply and lingering uncertainty around the impact of trade disputes on fuel demand weigh on prices, a Reuters poll showed. A survey of 40 economists and analysts in May forecasts Brent crude will average US$66.98 per barrel in 2025, down from April's $68.98 forecast, while U.S. crude is seen at $63.35, below last month's $65.08 estimate. Prices have averaged roughly $71.08 and $67.56 so far this year respectively, as per LSEG data. While tensions have somewhat eased between the U.S. and other trade partners, trade conflicts still loom as a key factor that could weaken oil demand, said Tobias Keller, analyst at UniCredit. 'On the supply side, oil prices will be heavily influenced by OPEC+ production decisions, while geopolitical tensions... pose ongoing risks of disruption and price volatility,' Keller added. Eight OPEC+ members began unwinding output cuts earlier this year, agreeing to larger-than-expected increases of 411,000 bpd for May and June. The members may decide on a similar output hike for July at a meeting on Saturday, sources have told Reuters. The move 'seems driven by a desire to punish non-compliant members rather than support oil prices at any specific level. Compliance will be hard to enforce, especially in Kazakhstan,' said Suvro Sarkar, lead energy analyst at DBS Bank. Meanwhile, analysts polled by Reuters expect global oil demand to grow by an average of 775,000 barrels per day in 2025, with many pointing to elevated trade uncertainty and the risk of economic slowdown as key concerns. This compares to the 740,000 bpd 2025 average demand growth forecast from the International Energy Agency earlier this month. With U.S. consumption and China oil demand constrained by fuel efficiency gains, economic uncertainty and the shift to electric mobility, 'demand growth is largely coming from the resource nations themselves,' said Norbert Ruecker, head of economics & next generation research at Julius Baer. Meanwhile, Russia's war in Ukraine continues to pose a geopolitical risk premium for oil. Analysts say markets have largely priced in the uncertainty. 'Potential de-escalation efforts and the possibility of lifting sanctions on Russian oil could further lower prices,' said Sarkar. Reporting by Sarah Qureshi and Kavya Balaraman in Bengaluru; Editing by Ros Russell, Reuters
Zawya
26-05-2025
- Business
- Zawya
Uganda eyes LPG windfall from Lake Albert oil projects
Uganda is eyeing a windfall on Liquefied Petroleum Gas (LPG) once its Lake Albert projects commence commercial production of oil next year, seeing itself as a net exporter onwards. This will also mean cleaner cooking options in the country just as much as a change in the dynamics of the commodity in the regional market. Uganda has struggled to implement its LPG and clean cooking programme for years now. It began five years ago but has remained in first gear, with less than 100,000 free cylinders distributed against a target of one million. Consequently, the country's penetration has remained below 3 percent. Currently, Uganda imports all the LPG it consumes from overseas producers like China, India, the US, United Ara Emirates and regional leader Kenya, but the imports meet a supply chain that lacks the necessary experience in storing the product, and the infrastructure does not adequately support its distribution. Gilbert Kamuntu, the Chief Commercial Officer of the state-owned Uganda National Oil Company (Unoc) says Uganda's LPG landscape is about to experience a shift. He explains that when oil production begins in 2026, the CNOOC-operated Kingfisher project is expected to produce 20,000 kilo tonnes of LPG, which will increase Uganda's consumption by 50 percent, from the consumption of 40,000 kilo tonnes to 60,000 kilo tonnes. Subsequently, LPG production from the 190,000 barrels per day Tilenga project will peak at 80,000 kilo tonnes. Additionally, the 60,000 barrels per day Hoima refinery, will churn out up to 220,000 kilo tonnes annually, raising Uganda's total capacity to 320,000 per year. Aggrey Ashaba, the UCEM Governing Council Chairman, believes that Uganda can leverage this opportunity to become a regional energy hub. With a renewables and hydropower capacity of 2,048MW, Uganda could become a net-electricity exporter, and a net-exporter of LPG from the Lake Albert oil and gas projects. However, critics argue that despite the potential for increased access, availability and affordability of the product, the lack of regulation and safety measures could hinder its uptake. Emmanuel Mageni, the Chief Executive Officer of Ultimate Gas Energies Limited, points out that Uganda's low consumption of only 40,000 tonnes a year compared to Kenya's tenfold higher consumption, or even Rwanda's 34,000 tonnes, highlights underlying issues that must be addressed to boost uptake, with or without production from the Lake Albert projects. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
