China-Uganda Energy Cooperation through the eyes of the ordinary citizen

by Admin (Posted on April 15, 2024)

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By Musiime George

Like many post independence African states, Uganda was struggling to free itself from the chokeholds of infrastructure-gaps, low levels of skills and technology as well as the associated high-levels of poverty. Therefore, in a bid to find suitable partnerships in solving many of these problems, Uganda established diplomatic ties with the People’s Republic of China (PRC) and both countries have collaborated ever since; into what now is more than six decades of bilateral cooperation. Moreover, following the launch of the Belt and Road Initiative (BRI) in 2013, there has been an increase in the level of engagement between the governments of China and Uganda. The primary focus of this essay however will be on this, one of the most important, if not the single most important of the fundamental elements of China-Africa Cooperation, the “Belt and Road Initiative (BRI).” Also with in the BRI, I will confine my discussion to the tenet of International Energy Cooperation (IEC).

Following the discovering Oil in 2006, Uganda has been working with China through China National Offshore Oil Cooperation (CNOOC) since 2012. Through this collaboration, the country has achieved significant milestones in the oil and gas sector including the recent commencement of drilling on Oil Pad-3 at the Kingfisher Oilfield last month. Furthermore, one of the most astonishing elements of the Uganda-China energy cooperation is the world’s biggest heated pipeline project the East African Crude Oil Pipeline (EACOP). This pipeline will span 1443Km running from Kabaale, Hoima in the Albertine graben to the port of Tanga in Tanzania. The EACOP will depend on upstream feeder pipelines that will run from the Central processing facilities (CPFs) at both the Tilenga and Kingfisher upstream projects.

The Chinese government is already committed to investing its share of the $15 billion EACOP project having invested more than $3 billion in both the EACOP and Kingfisher projects. The EACOP project that is valued at about one-third of the country’s total national economy has already created more that 3500 jobs for the locals and the Project is expected to create up to160,000 jobs along the way and contribute up to 30% to the country’s total GDP after completion.

According to Mr. Fan Xuecheng, the Minister Counsellor of the Chinese Embassy in Uganda while officiating at the “Kingfisher in my Eyes” schools drawing competition, emphasized that the Oil and gas sector besides deepening Cooperation between the two countries, will also be a driving force in the nation’s development.

The energy cooperation between Uganda and China builds on the three Cooperation measures proposed by President Xi Jinping during the last China-Africa leaders’ dialogue in South Africa which were purely laser focused on supporting Africa in the three areas of Industrialization, Agricultural modernization and Talent development which are undoubtedly key drivers of economic transformation. The cooperation in the oil and gas sector stands to transform Uganda from a net importer of Crude oil to a net exporter. This alone will provide an avenue for technology and skills transfer; create thousands of new jobs for Ugandans, not to mention the enormous Corporate Social Responsibility (CSR) accomplishments of CNOOC in Buhuka and areas around the Kingfisher Oilfield.

While this Uganda-China energy cooperation holds so much Potential for the country and stands to have a significant contribution if Uganda is to meet its goals regarding, the attainment of its vision 2040 or China-Africa cooperation vision 2035 or be it the African Union’s AU agenda 2063. Nevertheless, this potential has not deterred critics from citing displacement, or a lack of mindfulness of environmental protection et cetera, but are these sentiments shared on the ground? To answer this question, our team ventured into the communities around the Kingfisher Oilfield and to our surprise, the residents seemed to have a very different view. In fact, contrary to what the plastic narrative depicts, the residents praised the contribution of the sector to their socio-economic development and the economic transformation of the local communities citing among other things the safe water supply that came as a fruit of the oil exploration project in Kingfisher through CNOOC Uganda. Through CSR undertakings, the project has provided good roads, safe and clean water to nearly 13000 residents in the Buhuka community, top up salaries for local teachers, scholarships for poor but brilliant students among others.

Resettlement and more, not eviction: Whereas both concepts might imply relocating people, resettlement is planned and affected persons are supported as they reestablish themselves in the new locations. What is even more is that with the Kingfisher oil project, the affected persons that chose not to be relocated out of the area had new three-bedroom houses constructed for them by CNOOC. This scheme saw more than 50 modern homes complete with a modern kitchen and other sanitary amenities. By staying close to the development area, some were even able to get absorbed into the project workforce or their family members hence giving them an additional path to improved livelihood and household income.

Moreover, not only did the project take the care to minimize disruption of local communities, but also the ecosystems in the area continue to thrive where development of the Oilfield now exists alongside an extremely diverse wildlife habitat. A visit to the Kingfisher oil field never ends without sightings of wildlife, whether it is baboons basking by the roadside, alligators on the beaches or the nighttime chirrups of the multitudes of nocturnal insect species. The trip certainly gives a reality-based scenario where development and nature thrive in the same locality. This is even further enhanced by efficient waste management protocols at the site, state of the art equipment such as the Oil Rigs that produce so little sound that even with drilling going on around the clock, only those assigned to the rig may know that it is running. The development being carried out at the Kingfisher Oilfield goes to show that China does not merely talk about harmonious living among nations. Harmonious living is deeply enshrined in the Uganda-China energy cooperation projects at the Kingfisher Oilfield. The Projects are the perfect case for harmonious living where sustainability was built into project execution schedules.

It is easy to assume that, so much in the country’s oil and gas sector and Uganda’s energy cooperation with China is happening arbitrarily, mindless of the livelihoods of the local residents as well as the environment in the Albertine graben. However, what one sees and hears by mealy interacting with the local residents in the surrounding communities will tell a very different story. All this brings me to the conclusion that maybe we need to house our fire equipment for there is no fire on the home front. Instead, let us, critically evaluate the information we receive and embrace the opportunities presented by this Uganda-China collaboration under the flagship of the international energy cooperation for both our benefit as individuals as well as a nation.

The writer is a research fellow at the Sino-Uganda Research Centre.