Total E&P Uganda (TEPU) has sub-contracted two US companies, McDermott International Ltd and Sinopec International Petroleum Service Corporation, to develop the Tilenga oil project.
The contract, which takes an estimated $2 billion, involves provision of engineering, procurement, construction and commissioning (EPCC) services for the development of the onshore oil field that will generate up to 200,000 barrels per day (BPD). It will consist of 31 well pads connected to a central processing facility (CPF) via buried flowlines.
“This is a first step which allows launching the detailed engineering and procurement activities before the final approval by the Partners. This prestigious project demonstrates the continuity and strength of our business relationship with TotalEnergies and their partners CNOOC International of China and Uganda National Oil Company (UNOC),” said Tareq Kawash, Senior Vice President, Europe, Middle East, Africa.
“This is a momentous and essential project for Uganda for the development of its national companies and citizens—and as we continue to grow our footprint in Africa, we are committed to expanding local content opportunities in the communities in which we operate,” he added.
However, the formal contract award remains subject to Tilenga Partners approval.
TEPU, who holds 66.7% of the shares in both Tilenga and Kingfisher projects and the East African Crude Oil Pipeline (EACOP), her joint partner; China National Offshore Oil Company (CNOOC) with 33.3%, are expected to develop the fields for the production of oil in the next five years.
The Tilenga project is located in the Lake Albert Basin, and is the centerpiece of oil projects projected to bring investments of over $10 billion to Uganda and Tanzania. Tilenga includes six oil fields and will feature 426 oil wells at full production.
President Museveni, his Tanzanian counterpart and the oil companies recently signed different agreements which paved way for the construction of the oil pipeline from Hoima in Uganda to Tanga.