Browsing: Oil and Gas in Africa

EU Parliament Climate activists Uganda Tanzania Oil project

Both nations have the right to attain energy supremacy as it has been a long-time ambition. Despite that goal, environmental and climate-related concerns must be addressed if they are present. 

The EACOP is one starting point that can catapult the region towards economic mastery and energy sufficiency. Tanzania, which is also banking on natural gas exploration and production, could learn a lot from EACOP complications now. 

Despite the challenges, EACOP’s potential has managed to draw the attention of other financiers, and things are turning out well. The project has attracted US$300 million from alternative lenders as its proponents rush to save the project from pressure groups citing environmental concerns, according to a report by The Citizen. 

In 2013, Rio Tinto had to write down its Mozambican assets by US$3 billion as a result of failure to transport its coal to port for export. The company had invested huge sums of money based on assumptions of vast coking coal reserves that it would export. Upon the insurgence of extremist rebel groups, with escalating violent activities, the rail network was disrupted and there were increased security risks for normal operations to continue. 

The company suffered great loss as it failed to recoup its capital outlay and eventually failed to continue its operations. The high-security risks at a time when investment capital is yet to be recouped, have the potential to turn away more foreign capital injections in the gas-rich country.