UK based Tullow oil Plc and French’s Total, through subsidiaries in Uganda called for applications from engineering firms to provide infrastructure works design for oil wells as nation strives to live up to its 2020 commercial production timeline.
The two, together with their Chinese partner China National Offshore Oil Company (CNOOC) are the leading industrial players in Uganda.
In an advert placed in local dailies, the companies said they need early works and infrastructure design services for; Site preparation (Including earth works, area fencing and drainage for project zones), Concrete works for well pads, and Logistical infrastructure.
The Ministry of Energy and Mineral Development granted five oil production licences to Tullow Uganda Operations Pty Limited (Tullow) which operates Exploration Area 2. The area which measures about 1,527 square kilometers has about 26 wells and is co-owned by partners Total E&P and CNOOC, in which Tullow owns a 33% stake.
Three licences were also awarded to Total E&P Uganda BV (Total) for the operator of Exploration Area 1 which covers 3,066 square kilometers in which Total owns a 33% in collaboration with partners. Both companies joined partner CNOOC which had received its licence earlier.
The licences which last for 25 years demand that the companies invest over $8 billion in infrastructure development which includes; drilling about 500 wells, construction of processing facilities and feeder pipelines among others.
Speaking at a summit in Kampala, Uganda’s Energy Minister Irene Muloni said “Our understanding is that we want oil to flow in 2020 in this country”.
Muloni told delegates at the Second Uganda International Oil and gas Summit that the nation is moving swiftly to develop the midstream infrastructure including the export pipeline and refinery to ensure the sector does not slip off the timeline.
Uganda’s oil production is however dependent on the exit infrastructure which in this case is an export pipeline currently being haggled with its Southern neighbor Tanzania.
The joint 1,400-kilometer (870-mile) pipeline and is expected to run from oil-rich Albertine Graben to Tanzania’s northeastern port of Tanga.
Uganda expects the pipeline, which is backed by Total, to be completed in three years, according to Robert Kasande, the acting head of the state-run Petroleum Directorate.
The Ugandan government has already opened a tender for surveys of the route for the conduit.