Total’s East African crude oil pipeline ‘struggling’ to find financiers

(NationofChange, Costa Mesa CA, 8 February 2022) Campaigners have for years opposed the proposed pipeline and associated oil projects. They say that EACOP – which is set to be electrically heated to keep the oil at the right temperature – would cut through vital rivers and forest ecosystems. If the pipeline is built, over 100,000 people across Uganda and Tanzania would lose agricultural land, and thousands could lose their homes. TotalEnergies and partner China National Offshore Oil Corporation (CNOOC) signalled a public intention to proceed with the project last week. They pledged to invest more than US$10 billion in developing crude oil production in East Africa, in addition to the estimated $3.5-$5 billion cost of the pipeline. However, a coalition of environmental and human rights groups opposing the pipeline, Stop EACOP, says the announcement is thin on detail and the project is not yet assured. Last month, HSBC, Mizuho and the United Overseas Bank all confirmed they are not supporting the project. The statements bring the total number of banks that have distanced themselves from the project to 11, including ANZ, Barclays, BNP Paribas, Crédit Agricole, Credit Suisse, Royal Bank of Canada, Société Générale and UniCredit. After announcing the final investment decision, the shareholders of the East African Crude Oil Pipeline (Eacop) now turn to looking for money.