Hoima Tanga pipeline construction tender, a tussle btn Aussie n Brits companies

[Geza Ulole]

Two firms lead race for Uganda-Tanzania pipeline deal
SATURDAY AUGUST 4 2018

Tanzanian President John Magufuli (left) and Ugandan President Yoweri Kaguta Museveni at the project board for the construction of the East Africa Crude Oil Pipeline in Mutukula, Uganda, on November 9, 2017. PHOTO | NMG
In Summary

• Australia-based WorleyParsons and London-based Penspen are said to be the lead contenders to win the contract.
• Together with the Tullow Oil, Total and China National Offshore Oil Corporation, Uganda and Tanzania have been working on the projects financing blueprint for the past year.
• The pipeline will start in Hoima in western Uganda and terminate at the sea port of Tanga in northern Tanzania.

By ALLAN OLINGO
More by this Author
Australia-based WorleyParsons and London-based Penspen are said to be the lead contenders to win the contract for the construction of the Uganda-Tanzania pipeline that will start in Hoima and terminate at the sea port of Tanga in northern Tanzania.
A source with knowledge of the matter told The EastAfrican that the two firms are likely to be appointed the engineering, procurement and construction management services contractors for the joint pipeline.
“These two are the lead contenders out of the six firms that the technical team from the two countries and the development partners are reviewing. A decision will be made in November,” the source said.
Last week, Uganda’s Energy Permanent Secretary Robert Kasande said that agreements with Tullow Oil, Total and China National Offshore Oil Corporation, who are jointly developing Uganda’s oil, could be signed in the next three months.
Tullow said in its half-year update last week that the Ugandan deal is expected in coming months as the upstream and pipeline front end engineering design (FEED) and upstream environmental and social impact assessment have been completed, and now await the award of the engineering, procurement and construction (EPC) contracts.
Awaiting decisions

“The contract awards are under evaluation and overall project sanction is expected by the end of the year. The joint venture partners continue to work towards reaching a final investment decision for the development project around the end of 2018, with operational activity continuing as planned.
“Discussions on the key pipeline project agreements continue between the joint venture partners and the Ugandan and Tanzanian governments. The pipeline FEED and EPC tender process for the pipeline have been completed with the award to be made in the second half of this year,” Tullow said, adding that the project financing for the pipeline and development of the financial model are ongoing.
Together with the oil firms, Uganda and Tanzania have been working on the projects financing blueprint for the past year. The two countries will raise 70 per cent of the project’s total cost from international lenders. The remaining 30 per cent will be raised through equity by Total, Tullow, CNOOC and the joint venture partners.
The Tanzania Petroleum Development Corporation and Uganda National Oil Company, through its subsidiary Uganda National Pipeline Company, are also expected to be part of the fundraising drive.
“We are delighted to be awarded this contract and we look forward to developing our relationship with Tullow Oil and increasing our business in Kenya,” Andrew Wood, the chief executive officer of WorleyParsons said.
The British firm Penspen is also not new to the region, having been awarded a contract in 2014 to undertake feasibility studies on the proposed Kampala-Kigali segment of the Eldoret-Kampala-Kigali pipeline. Penspen completed the study in 2015.
The pipeline was meant to interconnect with the one running from Nairobi to Eldoret and would ease the transportation of petroleum products to and from Kampala and Eldoret, including a spur line to Jinja.
Infrastructure development
“I am delighted that Penspen could be selected for this project. We are keen to contribute to the economic growth of this region through the development of oil and gas infrastructure, and we have a strong history of success in East Africa,” the chief executive officer of Penspen, Peter O’Sullivan, said.
Last week, Reuters reported that Tullow was considering reducing its stake in Kenya’s oil block from 50 per cent to 30 per cent before the final decision, with eyes trained on Total as the likely buyer.
The move would give Total a majority stake in the project. Last year, Tullow agreed to a substantial farm-down of its assets in Uganda to Total in a $900 million deal, about seven months after it received a production licence from the Ugandan government.
“Tullow and its joint venture partners, Total and CNOOC Ltd, are awaiting approval of the farm-down transaction from the government of Uganda. This approval is expected in the second half of the year. At completion of the farm-down, Tullow anticipates receiving a cash payment of $100 million and a payment of the working capital completion adjustment and deferred consideration for the pre-completion period, with $59 million for 2017 and an estimated $70 million for 2018. A further $50 million cash consideration is due to be received when FID is taken,” Tullow said.
However, for Tullow and Total, the past month has been particularly bad for businesses in the region, with unrest stalling Tullow’s operations in Kenya, and South Sudan pulling the plug on Total over some exploration blocks.
Last week, South Sudan’s Petroleum Ministry announced that it had called off talks with Total about developing two oil blocks.
“The Ministry of Petroleum regrets that negotiations with Total have concluded in no deal. Total and the government failed to agree on the duration of the exploration and the commercial terms of a production-sharing agreement. We now look forward to bringing new investors into talks for these licences,” Petroleum Minister Ezekiel Lol Gatkuoth said in a statement.
Total, alongside Tullow Oil and Kuwait Foreign Petroleum Exploration Company, have been negotiating since 2013 with South Sudan to enter into a new agreement for two oil blocks.

From Hoima to Tanga, who will build the new pipeline?

 

[Geza Ulole]

Consortium lets FEED contract for Uganda’s first refinery
HOUSTON, Aug. 3
08/03/2018
By Robert Brelsford
OGJ Downstream Technology Editor

The Albertine Graben Refinery Consortium (AGRC)—comprised of YAATRA Africa LLC, Mauritius; Lionworks Group Ltd.; Mauritius; Baker Hughes General Electric’s (BHGE) Italian subsidiary Nuovo Pignone International SRL; and Saipem SPA of Italy—has let a contract to Saipem to deliver front-end engineering design for a grassroots 60,000-b/d refinery in Kabaale, in western Uganda’s Hoima district.
Valued at about $68 million, the FEED phase—which will use Ugandan vendors and personnel—will last 17 months, with a possible extension for the engineering, procurement, and construction phase to follow in the future, Saipem said.
The FEED contract follows AGRC’s project framework agreement (PFA) for the refinery signed earlier this year with the Ugandan government through the Ministry of Energy & Mineral Development and state-owned
Uganda National Oil Co. (OGJ Online, Apr. 12, 2018).

Slated for startup in 2020, the refinery project aims to create greater independence for the domestic Ugandan market by reducing imports of oil and refined products from other countries, as well as ensure a hub for refined products for the East African market, Saipem said.
Under the April PFA, the BHGE-led AGRC will be responsible for funding all pre-final investment decision activities for the project as well as construction and operation of the refinery, which is to be developed as a commercially viable venture with a regional market focus.


Once completed, the refinery—which is to be equipped with the latest processing technologies and environmental controls and designed to process crude from Uganda’s oil fields currently under development—will produce kerosine, gasoline, diesel, heavy fuel oils, and other products for supply to the Ugandan and regional markets.
Overall cost of the proposed refinery project is estimated at about $3-4 billion, Irene Muloni, Uganda’s minister of energy, said in April.
Contact Robert Brelsford at rbrelsford@ogjonline.com.

https://www.ogj.com/articles/2018/08/consortium-lets-feed-contract-for-uganda-s-first-refinery.html

 

[Geza Ulole]

Saipem handed Uganda refinery FEED

Italian player to work on plans for facility at Hoima, as upstream partners near FID on field development
Italy’s Saipem has landed the front-end engineering and design contract for a proposed new refinery in Uganda, where Total and CNOOC Ltd are planning to sanction an

Saipem handed Uganda refinery FEED

 

[Mkikuyu- Akili timamu]

The bhang smoker is still Trucking oil to mombasa or have turkana millitia men stopped him?

 

[Bottas]

Jiwe la msingi mliweka 2015 miaka 3 baadae bado wimbo ni ule ule wenyu

 

[Geza Ulole]

Jiwe la msingi mliweka 2015 miaka 3 baadae bado wimbo ni ule ule wenyuView attachment 826622

Hamna jiwe la msingi lililowekwa 2015 Hoima Tanga limewekwa Mara mbili August 2017 in Tanga na November 2017 in Mutukula.

Museveni, Magufuli launch sh13 trillion oil pipeline

Museveni, Magufuli launch oil pipeline



MINISTRY OF ICT AND NATIONAL GUIDANCE | REPUBLIC OF UGANDA
UGANDA MEDIA CENTRE
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#statehouse
Uganda, China agree on Road, Camera projects worth US$2.45bn
China to construct forensic laboratory, artillery systems

July 27, 2018
President Yoweri Museveni has said that a number of Government of Uganda funded contracts worth US$2.4bn have been given to Chinese companies especially on roads and recently security cameras worth US$120,259,686.
On Security and Defence, the President also said negotiations are underway on construction of forensic laboratory and two military artillery systems by Chinese companies.
The President was yesterday speaking during a bilateral meeting he held with his Chinese Counterpart Xi Jinping at the sidelines of the BRICS summit in Johannesburg South Africa.
On the economic relations, President Museveni thanked President Xi Jinping for support towards the construction of the Karuma and Isimba dams which are on-going, noting that completion of the Karuma dam is at 79.2% while Isimba is at 80%.
“In the transport sector, we have agreed with a Chinese company called China Harbours Engineering Company (CHEC) on the Standard Gauge Railway. We are soon signing the agreement and together with CHEC, we will approach EXIM bank for financing,” he said.
President Museveni informed his counterpart that in order to lay the pipeline from Kabale in Hoima (Uganda) to Tanga in Tanzania, there is a need to construct a number of roads including the Masindi-Tangi-Paraa-Bulisa road; Hoima-Butiaba-Wanseko road; Buhimba-Buramagi-Kakumiro road; Lusarira-Nkonge-Lumegere-Ssembabule; Masindi-Bisso-Kabaale-Kizirafumbi road; Hohwa-Nairongo-Kyaruseha road and Kabwoya-Buhuka and Ntoroko –Karugutu road; on this, negotiations have been going on between the Government of Uganda and some Chinese companies.
“A number of them have been identified, due diligence is going on which will lead to signing of the agreements,” he said.
In the private sector, the President said there are a number of Chinese Companies investing in Uganda.
He said a company called 'Guanzhou DongSong Energy Group, which is undertaking construction of the phosphate fertilizer, glass and sulfuric acid factory have been supported by the Government of China Insurance company which gave them insurance cover, which then facilitated them to go and acquire a loan from the Commercial Bank of China worthy $650M to invest in Uganda.
The President urged the Chinese government, for a government to government line of credit, which would support Uganda’s private companies to buy factory machine tools from China especially for processing of agricultural products and mineral beneficiations that the government can guarantee. Requests have also been made for Electrification for Industrial Parks. The cost is $182M for (Kapeka, Sukuru and Mbale Industrial Parks).
On his part, Chinese President Xi Jinping said that China is ready to deepen friendly and mutually beneficial cooperation in various fields with Uganda.
He commended President Museveni for his long-term dedication to the promotion of the development of China-Uganda relations as well as China-Africa relations.
Xi stressed that China and Uganda have seen sustained and rapid development of bilateral relations in recent years.
“The development strategies of the two countries are compatible and present each other with important opportunities. Our two countries should maintain the momentum of high-level exchanges and continue to support each other on issues of their core interests and major concern,” he said.
Xi called on China and Uganda to keep close communication on major international and regional hotspot issues and safeguard the common interests of the two countries and developing countries as a whole.
#ENDS



Ile yenu imefia wapi?

Uganda, China agree on Road, Camera projects worth US$2.45bn | Uganda Media Centre

 

[Geza Ulole]

Total and China Communications Construction Company (CCCC) have signed a mutual preferred supplier agreement to extend their existing relationship to a worldwide perimeter.
CCCC, a fully integrated engineering company, and Total, a global integrated energy producer and provider, are both key players in their respective fields with an extensive presence around the world.
Total currently supplies CCCC with fuels and lubricants, mainly in Africa, while CCCC‘s expertise ranges from design to construction, including financing, civil works, onshore and offshore work, pipeline construction and dredging. Both Total and CCCC have subsidiaries in Uganda.

Total Uganda supplies energy solutions and products to CCCC to facilitate the construction of major infrastructure including; the multi-million dollar Kampala-Entebbe Expressway, which was launched in June this year by President Museveni, and the expansion project of Entebbe International Airport, among others.
With this new agreement, Total and its affiliates will work toward being CCCC’s preferred partner on a much larger scale, by offering tailored solutions for its projects worldwide.

Total therefore intends to provide flexible, innovative and effective energy solutions to support CCCC’s rapidly growing business. This could include; storage facilities, technical support for Total products and a wide range of digital tools, including Optimizer, to help CCCC reduce its Total Cost of Ownership.
Total and CCCC’s complementary geographical footprint will allow both companies to develop new commercial prospects, whether as a customer or supplier of the other. This strategic partnership will provide CCCC and Total with a wide range of opportunities in Africa and beyond. The partners will work together at both the local and global level to address their future market and technology challenges.
“Total is a partner that recognizes the benefits of collaborating across the value chain” said Sun Ziyu, Vice President of CCCC.
“This agreement marks CCCC’s willingness to work with Total to support its overseas growth in the increasingly demanding construction and infrastructure market. It also demonstrates that CCCC believes that a strengthened relationship with Total is the right approach to develop tailored solutions to meet the challenging infrastructure and construction requirements in the most remote locations.”
“We are very enthusiastic about this new agreement,” said Stanislas Mittelman, Senior Vice President Africa for Total Marketing & Services.
“CCCC is aiming to be a worldwide leader in its fields. We intend to accompany them all the way with a broader range of services and a special focus on Africa and Asia, including all the countries associated within the “One Belt, One Road” initiative . By being proactive and customer oriented, Total will continue to develop high-standard energy solutions to remain their preferred supplier.”
China Communications Construction Company Ltd. (CCCC) is a world leading super large infrastructure service provider. CCCC is mainly engaged in infrastructure investment, construction and operation, equipment manufacturing, real estate and urban development, and offers customers package solutions and integrated services such as investment, financing, consultation, planning, design, construction, management and operation. With a history of over 100 years, CCCC has delivered products and services to over 150 countries.

https://chimpreports.com/total-cccc-sign-partnership-to-boost-construction-industry/

 

[eliakeem]

Jiwe la msingi mliweka 2015 miaka 3 baadae bado wimbo ni ule ule wenyuView attachment 826622

Tulia mtoto, kwani DreamLiner na SGR mlisemajee?? Subiri SINDANO ikuingie taratiibu.

 

[mwaswast]

tuta tuna tunge.

 

[Geza Ulole]

tuta tuna tunge.

Ile yenu ya Peter Keter toka Lokichar kwenda Lamu imeishia wap?

Business
Sh57b Lamu-Isiolo line next target, says Kenya Pipeline
By Macharia Kamau
Published: Jul 15th 2018 at 21:36, Updated: July 15th 2018 at 21:36

Welder mounts in the trunk pipeline electrochemical protection. [Standard]
The Kenya Pipeline Company (KPC) is kick-starting preparations for the construction of a 540-kilometre pipeline between Lamu and Isiolo.

KPC says it will start undertaking a study on the pipeline just as it completes the new Mombasa-Nairobi line.


The pipeline will be among the largest projects for the State-run company alongside the just-completed Sh48 billion Line 5, between Mombasa and Nairobi, which was plagued by delays and escalation of costs during its construction.

The refined petroleum products pipeline will be part of the Lamu Port South Sudan Ethiopia Transport (Lapsset) corridor - later to be extended to other parts of the country as well as beyond Kenyan borders, to Ethiopia.

Other projects on the corridor include a highway, railway and crude oil pipeline that will be used in moving oil from Lokichar to Lamu for export.

Given go-ahead

The Lamu Road Consortium (led by South African firms, Group Five Proprietary and the Development Bank of Southern Africa) has already been given the go-ahead to construct a 530-kilometre Lamu-Garissa-Isiolo road under a Public-Private Partnership (PPP) programme.


The first berths of the Lamu port are also under construction.

KPC said it would start doing a feasibility study for the pipeline between Lamu and Isiolo by end of this year.


Petroleum and Mining Cabinet Secretary John Munyes said the pipeline would be a ‘game changer’, opening up parts of the country that have for long been neglected and are devoid of infrastructure.

“We now need to undertake a study on a new pipeline from Lamu to Isiolo. That pipeline can open up the northeastern region and central parts of the country,” said Munyes last week when he received the first batch of petroleum products moved from Mombasa to Nairobi using the new pipeline.

While KPC is yet to make projections as to how much the Lamu-Isiolo pipeline would cost, the Lapsset Corridor Development Authority has previously estimated that the phase would cost Sh57 billion.


“We will do a study for the line. It has been part of our plans for some time. Now that it is a priority for the ministry, we will do it this year,” said KPC Chairman John Ngumi chairman.

According to the Lapsset masterplan, the pipeline that will be used to move imported products to the hinterland will reach Isiolo in the first phase and later be extended to Addis Ababa, Ethiopia.

ALSO READ: New pipeline to be commissioned in July, says KPC

The Lapsset Authority estimated that the pipeline will cost $885 million (Sh88.5 billion) of which $572 million (Sh57 billion) will construct the Lamu-Isiolo phase and Sh31 billion, the Isiolo-Moyale (450km) section.

Ethiopia is expected to foot the cost of taking the project to Addis Ababa from Moyale.

The pipeline, when complete, is expected to ease the flow of petroleum products to southern parts of Ethiopia, with another pipeline from the Port of Djibouti aimed at serving the northern parts of the landlocked country.

Ethiopia currently imports through Djibouti Port with recently enhanced relations with Eritrea expected to see the country get more options of getting goods in and out of the country.

Sh57b Lamu-Isiolo line next target, says Kenya Pipeline

MY TAKE
I read Ethiopia Ethiopia but which Ethiopia is that? As far as I know no comittment from Ethiopian side n the proposed Ethiopia's pipeline is to pass through Djibouti. Read the link below no shadow of Kenya can be spotted!

Ethiopia Oil Refinery Planned as Blackstone Pipeline Shelved