Projects in Uganda & Tanzania: TotalEnergies Entrusts Lionel Zinsou with a Mission to Assess the Land Acquisition Program
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Insights
Assessing the socio-economic impact of large-scale infrastructure projects like the Tilenga and EACOP projects is crucial for sustainable development. The land acquisition process, which affects thousands of households, has significant implications for local communities. The fact that a high percentage of households have signed compensation agreements and received compensation indicates a level of acceptance of the project's terms, which can be seen as a positive indicator of the social license to operate. However, the long-term success of such projects is contingent upon continuous monitoring of the promised improvements in living conditions.
Furthermore, the environmental and social governance (ESG) factors are increasingly influencing investor decisions. A transparent and positive report on the land acquisition program could enhance TotalEnergies' reputation and potentially attract ESG-focused investments. Conversely, any negative findings could lead to reputational damage and affect investor confidence. The role of ESG factors in investment decisions is growing and companies with strong sustainability practices are often rewarded with a lower cost of capital.
The involvement of a recognized expert to assess the land acquisition program for the Tilenga and EACOP projects underscores the strategic importance of these projects to TotalEnergies. With a combined shareholding majority in both projects, TotalEnergies appears to be consolidating its foothold in the African energy market. The successful implementation of these projects is expected to increase oil production capacity, which could lead to a significant boost in revenue for the company and its partners.
However, the geopolitical risk inherent in cross-border projects and the reliance on government cooperation between Uganda and Tanzania must be considered. The stability of these partnerships can influence the timeline and profitability of the projects. Investors should monitor the progress closely as delays or disputes could affect expected returns. Moreover, the global shift towards renewable energy sources could impact the long-term viability of such oil infrastructure investments.
The legal and ethical dimensions of land acquisition for large-scale projects are complex and subject to international scrutiny. The adherence to international standards for consultation, compensation and relocation is paramount to avoid litigation and maintain corporate integrity. TotalEnergies' decision to have the process independently assessed by an expert in African economic development is a proactive step towards ensuring compliance with human rights and legal frameworks.
Investors should be aware of the potential legal risks associated with land acquisitions, such as disputes over compensation or failures in the relocation process. These risks can lead to costly delays or legal challenges. A thorough and favorable assessment can mitigate these risks, while any shortcomings identified could signal the need for corrective measures, which could entail additional costs and affect the company's financials.
Patrick Pouyanné, Chairman and CEO of TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE), has entrusted Lionel Zinsou, a recognized expert in African economic development, with a mission to assess the land acquisition program carried out in
As the land acquisition process draws to a close, this mission will evaluate the land acquisition procedures implemented, the conditions for consultation, compensation and relocation of the populations concerned, and the grievance handling mechanism. It will also assess the actions taken by TotalEnergies EP Uganda and EACOP to contribute to the improvement of the living conditions for the people affected by these land acquisitions and suggest additional measures to be implemented if needed.
The mission will submit its report by April 2024, and its conclusions will be shared with the Tilenga and EACOP project partners.
The Tilenga and EACOP projects include a land acquisition program covering some 6,400 hectares, carried out on behalf of the Ugandan and Tanzanian governments. This program concerns 19,140 households and communities owning or using plots of land and includes the relocation of 775 primary residences. To date,
The Tilenga upstream development project in
About Lionel Zinsou
Former student of the Ecole Normale Supérieure (ENS) and the London School of Economics, Lionel Zinsou taught at the University of Paris XIII, at the ENS and at the ENSAE. Prime Minister of the
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About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, more sustainable, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
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Cautionary Note
The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Information concerning risk factors, that may affect TotalEnergies’ financial results or activities is provided in the most recent Universal Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).
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TotalEnergies Contacts
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Source: TotalEnergies SE
FAQ
Who has been appointed to assess the land acquisition program in Uganda and Tanzania by TotalEnergies (TTE)?
What is the deadline for the submission of the report on the land acquisition program in Uganda and Tanzania by TotalEnergies (TTE)?
How many households and communities are affected by the land acquisition program in Uganda and Tanzania by TotalEnergies (TTE)?
What is the ownership distribution of the Tilenga upstream development project in Uganda by TotalEnergies (TTE)?
Who are the shareholders of the cross-border pipeline developed by the EACOP Company in Tanzania by TotalEnergies (TTE)?
