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StopEACOP Coalition warns TotalEnergies and CNOOC investors of escalating ‘financial and reputational’ Risks

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By Witness Radio Team

The StopEACOP Coalition has issued a warning to shareholders and bondholders of TotalEnergies and China National Offshore Oil Corporation (CNOOC), urging them to reconsider their funding of the East African Crude Oil Pipeline (EACOP) due to the companies’ growing self-financing of the project that exposes shareholders and bondholders to gross financial and reputational risks.

In a public statement released alongside its Finance Risk Briefing Update No. 6, the coalition revealed that the two energy giants have quietly decided to increase their financial commitments to the $5.6 billion pipeline, stepping in as lenders to their own project. This move reflects the collapse of external financing for EACOP amid widespread rejection by international banks and insurers due to the project’s environmental, human rights, and climate risks. These risks include environmental, human rights concerns, and climate-related issues.

According to EACOP Limited’s 2024 annual report, TotalEnergies and CNOOC have provided additional facilities through shareholder loans to fund what remains of the construction budget.

Initially projected to cost up to $3.5 billion and intended to be financed with 40% equity and 60% debt, the project’s cost has since increased to a whopping $5.6 billion. The two companies have already injected roughly $2.8 billion in equity and secured around $755 million in external loans, leaving a debt gap of approximately $2 billion. Currently, TotalEnergies and CNOOC are moving to cover that shortfall themselves, bringing their total funding to about $4.8 billion, or 86% of the project’s total cost, more than triple what they had initially planned to use.

“This is a shocking example of developers financing their own controversial project after being rejected by global financial institutions. It shows that the EACOP is no longer financially viable without corporate self-funding and that investors in these companies are now directly financing one of the most destructive fossil fuel projects in the world,” Reads part of the statement.

The coalition argues that by turning inward for financing, TotalEnergies and CNOOC have transferred financial, legal, and reputational risks to their own shareholders and bondholders.

“Now, to keep the project alive, TotalEnergies and CNOOC are turning inward, relying on their own balance sheets and, by extension, your capital. The situation increases your financial risk, deepens your exposure to the project’s growing controversy, and links your investment portfolios even more directly to the environmental destruction, human rights abuses, and climate chaos that EACOP represents,” the statement says.

“This means that institutional investors holding TotalEnergies or CNOOC securities are now directly linked to the project’s growing controversies, from land grabs and community displacement to the threat it poses to climate goals.”

EACOP is a 1,443-kilometer pipeline stretching from Uganda’s Lake Albert oilfields to the Tanzanian coast, which has faced heavy opposition since its inception. This opposition is due to threats to biodiversity and the environment, as well as to people’s displacement among others.

It is from this that the STOPEACOP coalition is calling for active engagement with TotalEnergies and CNOOC to jointly address human rights and environmental risks and identify a time-bound escalation strategy, where investors publicly set deadlines for the companies to act, backed by credible consequences such as voting against board members or divesting from the companies altogether.

“We are therefore calling upon the shareholders and bondholders of TotalEnergies and CNOOC to act with integrity and foresight, in line with their responsibilities under the UNGPs and the OECD Guidelines, to avoid contributing to severe human rights and environmental impacts associated with the operations of your portfolio companies,” reads the statement.

In the last three years, over 20 major banks and 23 insurers have publicly ruled out support for the EACOP project, citing misalignment with global climate targets and reputational concerns.

The Finance Risk Briefing shows that 43 banks have ruled out financing for the 1,443 km pipeline since the project began.

Governments and international organizations have also faced mounting pressure to intervene, as civil society movements in Uganda, Tanzania, and abroad intensify opposition to its implementation due to its adverse effects.

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Ugandan farmers take TotalEnergies’ pipeline to UK court

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Police apprehend a Ugandan activist during a protest against the East African Crude Oil Pipeline (EACOP) plans in Kampala, Uganda, on 15 September, 2023. © Reuters

Four Ugandan farmers filed a case against the East African Crude Oil Pipeline (EACOP) at the UK’s High Court on Tuesday, seeking to have Ugandan constitutional, environmental and climate law applied to EACOP Ltd, the UK-registered company financing the project

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Lawyers Move to Court to Stop New Luxury Tourism Projects in Maasai Mara

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A coalition of regional legal and environmental organisations has moved to court seeking to halt the approval and development of new luxury tourism facilities in the Maasai Mara National Reserve, arguing that the projects threaten one of the world’s most important wildlife ecosystems.

The petition, filed before the Environment and Land Court, seeks orders stopping further construction of high-end tourist accommodation within the reserve pending the determination of the case.

Those behind the petition include East Africa Law Society, Natural Justice, JustAct and Africa Centre for Peace and Human Rights, who have sued several government agencies and private investors involved in the developments.

Among the respondents are Marriott International, The Ritz-Carlton Hotel Company, Minor Hotels, National Environment Management Authority (NEMA), Kenya Wildlife Service (KWS) and the Narok County Government.

Narok Governor Patrick Ole Ntutu and the Maasai Mara National Reserve date in Narok County.
Photo| County Government of Narok / Maasai Mara National Reserve.

The petitioners contend that approvals granted for the tourism developments violated constitutional and environmental safeguards, arguing that the projects were allowed within ecologically sensitive areas meant primarily for wildlife conservation.

Court documents further claim that the developments sit close to critical wildlife habitats and migration routes linking the Maasai Mara ecosystem with Serengeti National Park.

This, according to them, potentially disrupts the annual wildebeest migration that attracts thousands of tourists every year.

They have asked the court to certify the matter as one raising substantial constitutional questions and refer it to the Chief Justice for the appointment of a five-judge bench to hear the case.

The latest legal challenge comes months after the planned opening of the luxury Ritz-Carlton safari camp sparked public debate, with conservationists raising concerns that the facility could interfere with wildlife movement near the Sand River.

At the time, the Kenya Wildlife Service dismissed claims circulating online that the camp had blocked the wildebeest migration, describing videos shared on social media as misleading.

“The Ritz-Carlton safari camp is situated within a designated tourism investment low-use zone, as provided for in the Maasai Mara National Reserve Management Plan, 2023-2032,” KWS said at the time.

The agency also maintained that camps established along the Mara, Sand and Talek rivers have historically coexisted with wildlife movements without obstructing migration.

Source: kenyans.co.ke

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More than 17,000 people in the Philippines face eviction from their ancestral land for a multimillion-dollar energy project.

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By Witness Radio Team,

In the Visayas and Mindanao regions, in the Iloilo municipality on Panay Island in the central Philippines, thousands of Indigenous Tumandok people face forced displacement as a major energy project advances through their ancestral territories.

The Jalaur River Multi-Purpose Project, a state-backed dam and hydropower initiative, has triggered fears of forced evictions affecting more than 17,000 people and has already submerged ancestral land belonging to Indigenous communities.

The Tumandok have relied on the river basin as burial grounds, fishing sites supporting their livelihoods, and sacred landscapes preserved through oral history and cultural tradition for decades.

In 2012, the Korean Export-Import Bank provided a USD 260 million loan to the Philippine government for a multi-purpose project on the Jalaur River. Authorities present the project as a long-term solution for irrigation, flood control, and hydropower generation, designed to benefit agricultural production across thousands of hectares of farmland. However, host communities say the development has come at a high human cost.

The dam project, which began in the 1960s, entered a new construction phase in 2012, triggering new waves of human rights violations, from attacks and killings to arrests, and is expected to reach full completion in 2027.

As construction progresses, Indigenous ancestral domains within the project-affected watershed—covering approximately 16,780 hectares in the Calinog component—are being impacted by the Jalaur River Multi-Purpose Project Stage II. Community leaders say this is displacing Indigenous families from their homes amid concerns over inadequate consultation and potential violations of Indigenous land rights and free, prior, and informed consent standards.

Article 19 of the Declaration on the Rights of Indigenous Peoples requires states to consult and cooperate in good faith with the Indigenous peoples concerned, through their own representative institutions, to obtain their free, prior, and informed consent before adopting and implementing legislative or administrative measures that may affect them.

Article 32(b) of the same declaration urges states to make consent the objective of consultation before any projects that affect Indigenous peoples’ rights to land, territory, and resources, including mining and other uses or exploitations of resources.

John Ian Alecianga, coordinator of the Jalaur River People’s Movement, says opposition to the project has drawn allegations of intimidation, killings, arrests, and a heavy security presence in affected communities.

“Mobilizing these indigenous communities to fight for their rights has come at a cost. Indigenous leaders and activists have been subjected to surveillance, harassment, and red-tagging due to their resistance to the dam,” John said in an exclusive interview with our team.

According to John, tensions escalated in December 2020 when a police attack in Tumandok communities killed at least nine Indigenous leaders and elders and led to the arrest of 16 others.

“The military was deployed, human rights were violated, many elders were killed, and others were arrested, escalating into what we call a massacre. A fake search warrant was used in a staged operation to enter the houses of the Tumandok leaders. This is how much the government has ignored the rights of the indigenous peoples from the project conception until the project implementation,” he said. “The event remains one of the most traumatic moments in the ongoing conflict around the project,” John added.

Despite pressure, Indigenous communities continue to resist eviction through local and international advocacy networks, calling for justice for those killed in 2020, recognition of their land rights, and immediate protection from further displacement.

“The people are resisting because land is their life. Without it, there will be no community. There will be no identity,” he said.

The Jalaur River People’s Movement also seeks accountability through international mechanisms, including engagement with South Korean institutions linked to project financing.

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