EACOP vs Lamu pipeline




Uganda Picks Four Firms For New Oil Exploration Round​

By Irina Slav - Jun 04, 2021, 9:30 AM CDT

Uganda has shortlisted four companies for an exploration round following its second oil exploration tender ever. The tender involved five oil blocks along Uganda’s border with Congo, where oil has already been discovered, Dow Jones reports.

The companies include France’s Total—which recently changed its name to TotalEnergies—Australian DGR Global, Nigerian PetrolAfrik Energy Resources, and Uganda’s state-owned National Oil Co.

Total has had a presence in Uganda for five years after it was awarded a license to develop several fields that are currently the only producing fields in the country. These are estimated to contain some 6.5 billion barrels of crude. Total is developing them in partnership with Chinese CNOOC.

The French supermajor is also participating in the East-African Crude Oil Pipeline (EACOP) project: a 1,443 kilometer-long (897 miles) pipeline expected to transport oil from Uganda to the Tanga port in Tanzania. Total’s subsidiary, Total East Africa Midstream, is the developer of the project.

The pipeline, which will be the largest in Africa, is part of Uganda’s comprehensive plan to develop its oil resources. Later this year, the government plans to launch tenders for the construction work on the infrastructure along with a refinery.

On the production side, Total and CNOOC earlier this year inked a deal with the Ugandan and Tanzanian authorities to advance production at the Lake Albert project, which currently involves two fields. Production from these is seen at 230,000 bpd when it reaches its plateau, according to Total.

Uganda is a newcomer to the oil world but an ambitious one. These ambitions have understandably sparked criticism from environmentalist groups warning the pipeline project will wither never pay for itself because of declining oil consumption or contribute to climate change.

There have been doubts about the financing of the huge oil initiative in Uganda, too.

“Total and CNOOC still need to secure insurance and raise $2.5 billion in debt financing for the EACOP to move forward and they are going to struggle mightily to find enough banks and insurance providers willing to associate themselves with such a reckless project and assume its manifold risks on their books,” according to David Pred, Executive Director of Inclusive Development International, who also said on April“The oil companies are trying to dress up the investment decision signing ceremony, but fortunately this climate-destroying project is far from a done deal.”

By Irina Slav for Oilprice.com

 




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Uganda oil project faces final hurdle​

Published date: 07 June 2021

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TotalEnergies, formerly known as Total, plans to take a final investment decision (FID) on Uganda's 230,000 b/d Lake Albert oil project this month, despite coming under pressure to justify another giant greenfield oil development in its energy transition strategy and in the face of environmental opposition and growing insecurity in the neighbouring Democratic Republic of Congo (DRC).

At least 55 people were killed in attacks on 31 May that targeted camps for internally displaced people near the DRC villages of Boga, in Ituri province, and Tchabi, in North Kivu province, the UN says. The villages are located around 150km from Lake Albert, where TotalEnergies is developing its 190,000 b/d Tilenga oil field. The attacks are blamed on the Allied Democratic Forces, an Islamist militant group fighting to overthrow Ugandan president Yoweri Museveni. More than 1,200 civilians have been killed in the insurgency and over 2mn people have been displaced since 2017, according to the UN.

DRC president Felix Tshisekedi declared a month-long state of emergency in the country's eastern region in May. The governments of DRC and Uganda have agreed to fight the insurgents jointly. Kampala has deployed over 2,000 troops inside the DRC to further strengthen security, and plans to raise this to 2,500. This is partly to ensure that the $20bn Lake Albert development does not suffer the same fate as TotalEnergies' 13.1mn t/yr LNG project in Mozambique, where Islamist attacks prompted the company to declare force majeure on the $30bn scheme in April.

The DRC government last month suspended the civilian administrations of North Kivu and Ituri provinces following the escalation in insurgent attacks, and enforced martial law. Its intervention has given TotalEnergies more confidence to go ahead with the Tilenga and 40,000 b/d Kingfisher projects. With no threat seen to its workers, FIDs for the upstream projects and associated infrastructure are still on track to be taken before the end of June, the firm says.

TotalEnergies and China's state-owned CNOOC are joint-venture partners in the project, which will include a 1,445km crude export pipeline from Hoima in the Lake Albert region to Tanga port on Tanzania's Indian Ocean coast. More than 260 civil society organisations from around the world have called on banks not to fund the East African Crude Oil Pipeline (EACOP) because of ecological and humanitarian risks. The Tilenga development lies within the Murchison Falls National Park, home to endangered species such as chimpanzees.

Don't bank on it​

The EACOP consortium plans to source around $2.5bn of the $3.5bn cost of building the pipeline from banks. Some banks have indicated that they will not finance the project, but the African Development Bank is among those willing to do so. The IMF has also agreed to lend the country $900mn, of which $480mn is intended for Uganda's equity stake in the pipeline.

TotalEnergies chief executive Patrick Pouyanne last month tried to appease shareholders' concerns over the project's potential environmental harm by saying that the firm will do everything possible to ensure that its impact is minimised. And he defended the role of Ugandan crude within the company's energy portfolio, citing projected production costs of around $11/bl and CO2 emissions of 13 kg/bl, well below TotalEnergies' current averages of $20/bl and 20 kg/bl, respectively.

TotalEnergies holds a 56.67pc stake in the upstream portion of the Lake Albert project, CNOOC 28.33pc and Ugandan state-owned UNOC 15pc. Production is expected to start up in 2025, with 216,000 b/d carried through the EACOP for export and the rest to be supplied to the planned 60,000 b/d Albertine Graben refinery, to be launched in 2024 at Hoima.

By Mercy Matsiko

 

CNOOC joins Total’s bid for Uganda’s new oil blocks​

June 5, 2021 Business 0

Uganda’s oil sector suffering from political interference – Researchers


Kampala, Uganda | URN | China National Offshore Oil Corporation (CNOOC) is joining French giant Total to bid for Uganda’s new oil blocks in the Albertine.

While the Energy ministry shortlisted four companies to bid for new oil blocks, this publication learnt that CNOOC will be part of the bid under the invitation of Total.

The issue about CNOOC’s participation was questioned at bidder’s conference organized by the Ministry of Energy on Friday.

One of the companies demanded for an explanation on why the Chinese company was part of the conference yet it was not on the shortlist.
It is emerging that one of the shortlisted bidder’s, Total E&P Activities Petrolieres, France wrote to the Energy Ministry on 27th May this year notifying it that they are partnering with CNOOC to bid for the blocks under offer.

The manager in charge second licensing, Frank Mugisha confirmed the latest development saying a company shortlisted for biding was allowed to add a joint venture partner at the Request for Qualification (RfQ) stage.

But Mugisha adds that the deadline for bidders to bring on new partners that did not participate in the bid has elapsed so those that were qualified can proceed as they were.

“A single bidder can bring in another party provided that party meets certain requirements. It has to be competent financially, technically because we evaluate that. It has to have powers of attorney, joint venture agreement between the successful company and the new entrant. So they have done all those. And you know CNOOC. CNOOC is a big company which is licensed in Kingfisher,” said Mugisha.

The entrance of CNOOC in the previously stalled second licensing period for blocks in the Albertine region raises hope that Uganda is likely to attract more financial resources as the country embarks on more exploration in the oil-rich Albertine graben.

Mugisha agrees that CNOOC’s participation should be positively viewed given the hefty financial requirements during exploration and drilling stages.

“And it is really an advantage. You know the area they are bidding for has a large portion of offshore and we have head challenges in drilling offshore. Actually more that 50% offshore. In terms of drilling, you need not less than $50 million in drilling a well offshore. So which company even if you are talking about national oil company. No company can afford that.”

The blocks under offer include Avivi in Arua: Omuka in Nebbi, Kasuruban stretching between Buliisa and Packwach. Others are Turaco and Ngaji measuring along the borders of Bushenyi, Rubirizi and Ntungamo.

In oil and gas extraction, “offshore” refers to the development of oil fields and natural gas deposits under the ocean. In Uganda’s case, oil exploration and possible drillings will be conducted along Lake Albert on Uganda-DRC border.

Oranto Petroleum Ltd was the only company that was under the last licensing round granted licenses to explore for oil in the 410-sq-km Ngassa shallow and deep water play of Lake Albert.

The company which has been in Uganda since 2017 has not drilled any well in that area.

Its activities were hampered by the flooding in the area as well the outbreak of COVID-19 pandemic. It had been anticipated that Uganda National Oil Company (UNOC) would invite CNOOC for this round of bidding.

It seems like CNOOC had decided to join its joint venture partner as the pursue their existing operations in Tilenga and Kingfisher areas.
The two partners are now major players in Uganda’s oil sector possessing sizeable capital and expertise in mid and downstream operations.
They both have stakes in the East African Crude Oil Pipeline whose construction is expected soon with conclusion of a number of agreements between Uganda and Tanzania and respective pipeline companies.

In the event that CNOOC and Tullow apply and win the bids, they are expected to form a joint venture to join the exploration process and sign production sharing agreements in respect to each block under offer.

In an interview, Frank Mugisha who doubles as the Acting Commissioner in Charge of Petroleum Exploration Development and Production Department said they should be grateful that the country is getting big companies under this round of licensing.

“Because now we are sure that if there is any drilling offshore, Total and CNOOC should be able to afford,” he said
Some experts have originally feared that process may not attract big investors. One of the reasons has been the fact that some of the areas under bidding cover a huge area in terms of kilometers and therefore costly in terms of operation.

 
17 MAY 2021

NEWS

Sasol to sell 30% stake in Mozambique gas pipeline​

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Sasol ROMPCO Reatile Sasol intends to retain 20% stake in the pipeline. Credit: LoggaWiggler from Pixabay.
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Sasol has signed an agreement to sell a 30% stake in Mozambique gas pipeline to a Reatile-led consortium for $353m (ZAR5bn).
The 865km-long gas transmission pipeline, which is owned by the Republic of Mozambique Pipeline Company (ROMPCO), transports gas from Mozambique to South Africa.

ROMPCO is joint venture of Sasol’s major subsidiary Sasol South Africa (SSA) (50%), Companhia Mocambiçana de Gasoduto (CMG) (25%), and South African Gas Development Company (SOC) (iGas) (25%).

Under the deal terms, the stake in ROMPCO will be divested to an acquisition vehicle owned by the Reatile consortium.

The consortium comprises Reatile Group Proprietary and the IDEAS Fund, managed by African Infrastructure Investment Managers Proprietary.

Upon completion of the deal, SSA will continue to operate and maintain the pipeline. It will retain a 20% stake in the pipeline.

Sasol group CFO Paul Victor said: “The Sale Shares will, subject to certain adjustments, be sold for a consideration comprising an initial amount of R4,145 billion and a deferred payment of up to R1 billion payable if certain agreed milestones are achieved by 30 June 2024.”
Sasol said that the sale is part of its divestment programme to reduce its debt.

The proposed transaction is subject to the waiver or exercise of pre-emptive rights held by CMG and iGas.

It is also subject to competition and anti-trust approvals in the relevant jurisdictions as well as all required consents of third parties including governmental authorities.

said in a statement: “Sasol’s agreements with ROMPCO to transport gas to Secunda are unaffected and the tariffs remain as per the said agreements, which were approved by the National Energy Regulator of South Africa (NERSA).”




MY TAKE
Huu mradi mbona wanaharakati hawaupigii kelele? Yaani wanaona EACOP tu? kuna fitna naiona!
 
17 MAY 2021

NEWS

Sasol to sell 30% stake in Mozambique gas pipeline​

SHARE
Sasol ROMPCO Reatile Sasol intends to retain 20% stake in the pipeline. Credit: LoggaWiggler from Pixabay.
Sign up here for GlobalData's free bi-weekly Covid-19 report on the latest information your industry needs to know.

Sasol has signed an agreement to sell a 30% stake in Mozambique gas pipeline to a Reatile-led consortium for $353m (ZAR5bn).
The 865km-long gas transmission pipeline, which is owned by the Republic of Mozambique Pipeline Company (ROMPCO), transports gas from Mozambique to South Africa.

ROMPCO is joint venture of Sasol’s major subsidiary Sasol South Africa (SSA) (50%), Companhia Mocambiçana de Gasoduto (CMG) (25%), and South African Gas Development Company (SOC) (iGas) (25%).

Under the deal terms, the stake in ROMPCO will be divested to an acquisition vehicle owned by the Reatile consortium.

The consortium comprises Reatile Group Proprietary and the IDEAS Fund, managed by African Infrastructure Investment Managers Proprietary.

Upon completion of the deal, SSA will continue to operate and maintain the pipeline. It will retain a 20% stake in the pipeline.

Sasol group CFO Paul Victor said: “The Sale Shares will, subject to certain adjustments, be sold for a consideration comprising an initial amount of R4,145 billion and a deferred payment of up to R1 billion payable if certain agreed milestones are achieved by 30 June 2024.”
Sasol said that the sale is part of its divestment programme to reduce its debt.

The proposed transaction is subject to the waiver or exercise of pre-emptive rights held by CMG and iGas.

It is also subject to competition and anti-trust approvals in the relevant jurisdictions as well as all required consents of third parties including governmental authorities.

said in a statement: “Sasol’s agreements with ROMPCO to transport gas to Secunda are unaffected and the tariffs remain as per the said agreements, which were approved by the National Energy Regulator of South Africa (NERSA).”




MY TAKE
Huu mradi mbona wanaharakati hawaupigii kelele? Yaani wanaona EACOP tu? kuna fitna naiona!
Hao sio wanaharakati bali ni bots wanaotumikia ktk vita vya kiuchumi kati yetu na hao Ntang'au....
 

GlobalData: Uganda holds potential to be top five oil producer in Sub-Saharan Africa​

Save to read listPublished by Elizabeth Corner, Editor
World Pipelines, Thursday, 10 June 2021 08:40



With the East African Oil Pipeline project recently getting the go-ahead, Uganda is set to produce its first oil as early as 2025 and production in the next five years is expected to jump to 230 000 bpd, from zero in 2021, says GlobalData, a data and analytics company.

GlobalData: Uganda holds potential to be top five oil producer in  Sub-Saharan Africa

Conor Ward, Oil & Gas Analyst at GlobalData, comments:
“The Lake Albert oil development in Uganda will be one of the largest oil developments seen in Africa in the last 20 years, expecting to recover over 1.5 billion bbls of oil. The Tilenga and Kingfisher fields (part of the Lake Albert development) will bring significant value to the government of Uganda and the two fields alone could generate up to US$8 billion in fiscal revenues.”

It has been 15 years since the Kingfisher field ¬¬– now operated by CNOOC – was first discovered, and the partners have suffered multiple delays in making an investment decision. Initially due to civil unrest in the area and most recently over fiscal disputes with the government and over the route of the pipeline. Sanctioning the pipeline export project is a major milestone that the participants were able to clear to progress the area development.

Ward concludes: “Major concerns over the route of the pipeline were raised by local citizens over land impacts as the route will cover 1400 km from the Western edge of Uganda to the port of Tanga in Tanzania and will require constant heating and multiple pumping stations due to the waxy nature of the crude. The pipeline will be the longest constructed in over 20 years in the region and will provide Uganda with a route for oil export into international markets.”

Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.

World Pipelines’ June 2021 issue

The June issue of World Pipelines includes a regional report on Russia’s most prominent oil and gas pipeline projects, as well as technical articles on design standardisation (Burns & McDonnell), corrosion (Tesi S.p.A.), hydrogen blending in pipelines (ILF) and much more. Don’t miss the dedicated Coatings Q&A on p. 23, with Winn & Coales International Ltd.

 

GlobalData: Uganda holds potential to be top five oil producer in Sub-Saharan Africa​

Save to read listPublished by Elizabeth Corner, Editor
World Pipelines, Thursday, 10 June 2021 08:40



With the East African Oil Pipeline project recently getting the go-ahead, Uganda is set to produce its first oil as early as 2025 and production in the next five years is expected to jump to 230 000 bpd, from zero in 2021, says GlobalData, a data and analytics company.

GlobalData: Uganda holds potential to be top five oil producer in  Sub-Saharan Africa

Conor Ward, Oil & Gas Analyst at GlobalData, comments:
“The Lake Albert oil development in Uganda will be one of the largest oil developments seen in Africa in the last 20 years, expecting to recover over 1.5 billion bbls of oil. The Tilenga and Kingfisher fields (part of the Lake Albert development) will bring significant value to the government of Uganda and the two fields alone could generate up to US$8 billion in fiscal revenues.”

It has been 15 years since the Kingfisher field ¬¬– now operated by CNOOC – was first discovered, and the partners have suffered multiple delays in making an investment decision. Initially due to civil unrest in the area and most recently over fiscal disputes with the government and over the route of the pipeline. Sanctioning the pipeline export project is a major milestone that the participants were able to clear to progress the area development.

Ward concludes: “Major concerns over the route of the pipeline were raised by local citizens over land impacts as the route will cover 1400 km from the Western edge of Uganda to the port of Tanga in Tanzania and will require constant heating and multiple pumping stations due to the waxy nature of the crude. The pipeline will be the longest constructed in over 20 years in the region and will provide Uganda with a route for oil export into international markets.”

Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.

World Pipelines’ June 2021 issue

The June issue of World Pipelines includes a regional report on Russia’s most prominent oil and gas pipeline projects, as well as technical articles on design standardisation (Burns & McDonnell), corrosion (Tesi S.p.A.), hydrogen blending in pipelines (ILF) and much more. Don’t miss the dedicated Coatings Q&A on p. 23, with Winn & Coales International Ltd.


Tony254 njoo uone ngoma inavyonoga.
🤣🤣🤣
 

Total awards $1.9b oil project deal to British, Chinese firms​

TUESDAY JUNE 15 2021​



Pierre Jessua.

Pierre Jessua, General Manager, Total E&P Uganda. PHOTO | FILE | NMG

Summary

  • The 1,443km Eacop, which starts from Hoima in western Uganda to the Indian Ocean port of Tanga in Tanzania, is key for the transportation and commercialisation of Uganda’s oil to get to the export markets.


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By JULIUS BARIGABA
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French company Total has awarded the $1.9 billion deal for the construction of its Lake Albert oil production Tilenga project in Uganda to a consortium led by British and Chinese firms, the company announced on Monday.

Total, the lead investor in Uganda’s oil projects, said it signed contracts for the main surface facilities Engineering, Procurement, Supply, Construction and Commissioning (EPSCC) contracts as well as five drilling packages for the Tilenga project located in Nwoya and Buliisa Districts.

The companies that won the lucrative deal include CB&I UK Limited, a McDermott subsidiary company, and Chinese firm Sinopec International Petroleum Corporation the EPSCC of the central processing facility, flowlines and other associated surface facilities.

The deal also includes contracts with Schlumberger Oilfield Eastern Limited for three well engineering packages that include upper completions, artificial lift and associated services, directional drilling, well logging, measurement while drilling, buttonhole assembly, data transmission and real time operation centre services, as well as wellheads, Christmas trees and associated services.

Other firms in the deal are Vallourec Oil and Gas France which was awarded the contract for one well procurement package, which also includes casing, tubing and associated services, and ZPEB Uganda Co. Limited for one oil rig package that comprises onshore drilling rigs, tubular running and fishing services.

“Following a comprehensive, competitive and thorough tender evaluation and contracting process that began with the phased submission of Front-End Engineering and Design proposals to ensure project optimisation, we are pleased to sign these conditional letters of award for the Tilenga project to these five highly qualified industry players.


“The launch of these contracts underscores our commitment to developing the Tilenga project while maximising value and viability of the project, and observing the most stringent Health, Safety, Social, Environment and Quality standards to which the contractor must adhere,” said Pierre Jessua, General Manager, Total E&P Uganda.

The companies above have also made significant commitments to promoting national content through employing Ugandans, use of local goods and services and technology transfer.

This is the first major deal out of several Tilenga packages that will in total cost an estimated $4 billion to $5 billion when the tendering process for all the projects is completed and contracts awarded, an industry source told The EastAfrican.

“Thanks to this first step, the Tilenga project development phase has a target to achieve first oil in 43 months. All the companies will deploy their years of expertise and best-in-class technology to delivering the project while also ensuring sustainable value retention in the economy through promotion of national content,” Mr Jessua added.

Along with the CNOOC operated Kingfisher, Tilenga is one of two oil projects in the Lake Albert region for which the Petroleum Authority of Uganda awarded production licences.

The project has production capacity of 190,000 barrels of oil per day, includes six fields to be developed, 426 wells to be drilled from 31 well pads, one central processing facility located in Buliisa, outside the Murchison Falls National Park.

Its location in protected and the conservation area remains a concern for environmental activists, but Total says the project has been designed to maximise the Murchison Falls National Park, the footprint of the temporary and permanent facilities, which will occupy less than 0.05 percent of the park’s surface area.

Industry sources say the award of contracts for Tilenga signals optimism for the financing of the $3.5 billion East African Crude Oil Pipeline (Eacop) whose funding remains uncertain after targeted lenders pulled out over the project’s environmental risk and human rights violation.

The 1,443km Eacop, which starts from Hoima in western Uganda to the Indian Ocean port of Tanga in Tanzania, is key for the transportation and commercialisation of Uganda’s oil to get to the export markets.


 

Total Expects Output at Ugandan Oil Project in Three and Half Years​


06/14/2021 | 05:35am EDT


By Nicholas Bariyo
KAMPALA, Uganda--French oil company TotalEnergies SE hopes to commence oil production at its Tilenga oil fields in Uganda in the next three and half years after awarding the main construction contract for the oil project, Total's Ugandan unit said Monday.

A consortium of a McDermott International Ltd. subsidiary and state-controlled China Petroleum & Chemical Corp., known as Sinopec, will undertake the $2 billion contract to develop the 190,000 barrels-a-day oil project, which includes construction of five drilling packages within the oil-rich Lake Albertine rift basin along Uganda's western border with the Democratic Republic of Congo.

It is another step forward for the long-delayed development of Uganda's oil fields, weeks after Total signed a $3.5 billion deal for the project's export pipeline.

"The Tilenga project development phase has a target to achieve first oil in 43 months," Pierre Jessua, general manager of Total's unit in Uganda, said. "The launch of these contracts underscores our commitment to developing the Tilenga project while maximizing value and viability of the project," he said.

Some $10 billion is required to develop the oil fields and a 900-mile pipeline, Total said.

Total holds a majority stake in the project, which is being jointly developed with CNOOC Ltd. Exploration companies have discovered as much as 6.5 billion barrels of crude in Uganda and oil production could peak at around 230,000 barrels-a-day when commercialization starts.

Write to Nicholas Bariyo at nicholas.bariyo@wsj.com
(END) Dow Jones Newswires
06-14-21 0534ET

 
















CC: Bantugbro



MY TAKE
Ukiingia twitter huoni activists wakiongelea hii Lokichar-Lamu crude oil pipeline project ! Ila naona Wakunya busy ku-fight EACOP, kuna namna tunaweza fanya ku-raise awareness ya huu uharibifu huku Lokichar-Lamu corridor?
 

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