EACOP vs Lamu pipeline

EACOP vs Lamu pipeline




CC: Tony254 uungwana ni vitendo kubali defeat after years of denying the pipeline won`t kickoff now u should come here and concede ur sorry ukunya! And tell us how is the progress of Lokichar-Lamu pipeline!

Kaka kwa huu mradi maumivu ni makali sana kwa Wakenya!!! Naamini hata Mh. Uhuru akiandika kitabu atautaja namna tonge lilivyopokonywa mdomoni ni aibu na maumivu makali mno.It was one of the winning shot went astray!!!
 

Investors commit $10 billion to pump Uganda's oil deposits


By RODNEY MUHUMUZA
Updated: February 01, 2022 08:20 AM
Created: February 01, 2022 07:26 AM

KAMPALA, Uganda (AP) - Uganda and a group of investors on Tuesday announced their decision to finally proceed with oil production following years of setbacks that threatened the East African country's efforts to become an oil exporter.

The China National Offshore Oil Corporation and the French energy conglomerate TotalEnergies said Tuesday that the investment in Uganda would be more than $10 billion.

That sum includes about $3.5 billion to be spent constructing a heated pipeline linking oil fields in western Uganda to the Indian Ocean port of Tanga in Tanzania. At 897 miles, the pipeline will be one of the world's longest.

Uganda is estimated to have recoverable oil reserves of at least 1.4 billion barrels.

An attendant fuels a vehicle at a Total gas station in the Kamwokya suburb of Kampala, Uganda, Tuesday, Feb. 1, 2022. Uganda and a group of investors on Tuesday announced their decision to finally proceed with oil production following years of setbacks that threatened the East African country's efforts to become an oil exporter. (AP Photo/Hajarah Nalwadda)


An attendant fuels a vehicle at a Total gas station in the Kamwokya suburb of Kampala, Uganda, Tuesday, Feb. 1, 2022. Uganda and a group of investors on Tuesday announced their decision to finally proceed with oil production following years of setbacks that threatened the East African country's efforts to become an oil exporter. (AP Photo/Hajarah Nalwadda)
AP

The signing of the final investment decision on Tuesday is a key milestone that authorities were eager to reach in the 16 years since the commercially viable quantities of oil were discovered. This means the investors are firmly committed to extracting Uganda's oil resources and will proceed to award major contracts.



Uganda's efforts to produce oil have been threatened by corruption allegations, tax disputes, and administrative delays.
The ceremony in Kampala, the capital, was marked by fanfare, with performances by tribal singers and a police brass band. Witnesses included Ugandan President Yoweri Museveni and Tanzanian Vice President Philip Mpango.


"This is the day that the Lord has made," said Ugandan Energy Minister Ruth Nankabirwa. "The country is now more confident than before."
TotalEnergies CEO Patrick Pouyanne said the ceremony marked a "historic" moment and urged unity and trust among the venture partners.
"We are also very conscious of the sensitivities of the areas where we are going to work, in particular from an environmental point of view," he said. "We are committed to leaving a positive environmental footprint."


It remains unclear precisely when Uganda will export its first drop of oil, since developing storage sites, processing facilities and other key infrastructure will take time.

Authorities expect oil exports to start in 2025.

Despite anxiety over falling crude prices in recent years, hopes have remained high in Uganda over the potential for oil exports to lift the country of 45 million people into upper middle-income status by 2040.

Annual per capita income in Uganda was less than $800 in 2019.

A 2015 World Bank study emphasized that the economic benefits would be considerable if local companies are competitive enough to win lucrative service contracts in the oil sector. Authorities hope majority shareholder TotalEnergies and its Chinese partner CNOOC will honor commitments to award up to 30% of the contracts to suppliers of Ugandan origin.

But activists have attacked the pipeline project as "irresponsible," saying it isn't compatible with the goals of the Paris climate accord.

Facing pressure to abandon its projects in Uganda, in 2021 TotalEnergies acknowledged "significant social and environmental stakes" posed by oil wells and the pipeline, pledging to proceed responsibly. The conglomerate has said it will limit oil extraction from a popular national park to less than 1% of the protected area.

Critics also say the rights of local residents are at risk and that the pipeline, which would cross rivers and farmland, will damage fragile ecosystems.

The pipeline project could cost more than 12,000 families their land rights, according to the Paris-based International Federation for Human Rights, which has been tracking Uganda's oil projects.

Others have warned against the personalization of oil resources and heavy borrowing by national budget authorities anticipating oil revenue.

Museveni, who has led Uganda since 1986, has sometimes suggested that the discovery of oil created an opportunity for him to remain in power while his government strives to lift more Ugandans out of poverty.

(Copyright 2022 by The Associated Press. All Rights Reserved.)

 



My Take
Now DRC-Congo, Burundi and South Sudan are next while LNG Lindi is in drafting while negotiations for Bagamoyo port r back!
 
While we don't wish anyone misfortune, the lobby groups in this project are gaining currency each day, we have seen how they were successful in persuading leading insurance companies of the world to withdraw from the project. If there is no insurance company willing to underwrite a project of such magnitude, then there will be no bank that will touch such a project. Lobby groups are very strong in western countries and have power to influence decisions and change the course of action. Lets not celebrate....No one has committed to finance this humongous project...what is being done by the two countries now are merely window dressing activities.
Umia pole pole.
 

Total gives green light to $10bn Uganda oil project​


TotalEnergies
Megaproject will turn east African country into an oil producer for the first time

Containers of crude oil at a test drilling site at Lake Albert in Uganda
The project will include the construction of the world’s longest heated pipeline © Yasuyoshi Chiba/AFP/Getty

Tom Wilson in London yesterday

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TotalEnergies has approved the development of a multibillion-dollar oil project in east Africa that will require the construction of the world’s longest heated pipeline and make landlocked Uganda an oil producer for the first time.

The French energy major and its partners China National Offshore Oil Corporation (Cnooc) and the Uganda National Oil Company announced the final investment decision for the $10bn project on Tuesday at a ceremony in the Ugandan capital Kampala.

Oil was first discovered in Lake Albert on Uganda’s north-western border with the Democratic Republic of Congo in 2006. But successive problems, not least the challenge of how to build the 1,443-km electrically heated pipeline needed to export the crude via Tanzania, led to repeated delays and questions over whether the project would ever be realised.

Those doubts have continued even after Total strengthened its control of the project in 2020, as climate pressure mounts on energy majors to reduce or cease investment in new oil and gas projects.

Like other European oil majors, Total has committed to cutting emissions but it has also shown it remains willing to fund new hydrocarbon investments. In September it announced an initial $10bn investment in a series of projects in Iraq to boost oil production, reduce gas flaring and increase renewable power generation.

“The development of Lake Albert resources is a major project for Uganda and Tanzania, and our ambition is to make it an exemplary project in terms of shared prosperity and sustainable development,” chief executive Patrick Pouyanné said in a statement released following the ceremony.

Total said the project was in line with the company’s strategy of only approving new projects that were “low-cost and low commissions”.

However, the investment decision is likely to be loudly opposed by climate activists, who have criticised the environmental impact of the project and questioned the long-term economic benefits to Uganda given forecasts that global crude consumption could peak before 2030.

Oil production from the Tilenga project operated by Total and the Kingfisher project operated by Cnooc is expected to start in 2025 and reach a combined 230,000 barrels a day. That would take Uganda past Gabon, which according to Opec was the seventh-largest oil producer in Africa last year at 186,000 b/d.

Pouyanné said Total was “fully aware of the important social and environmental challenges” associated with the project. “We will pay particular attention to use local skills, to develop them through training programmes, to boost the local industrial sector in order to maximise the positive local return of this project,” he said.

Similarly to the Iraq deal, which included a commitment to construct a 1 gigawatt solar power plant, Total said it had signed a memorandum of understanding with the Ugandan government to explore the installation of 1GW of renewable power capacity in the country.

The French energy major controls a 57 per cent stake in the upstream project and a 62 per cent stake in the pipeline. Other shareholders in the East African Crude Oil Pipeline company that will build and operate the pipeline include Cnooc, which has an 8 per cent stake, and the Ugandan and Tanzanian governments, which hold 15 per cent each.

 
Hongereni hapa mumeangukia bahati kubwa sana mahasimu wetu wa jadi.
Huu ndo uungwana sasa na South Sudan tunawanyang'anya, chini ya Kaguta hamuoni kitu! Umeona profile picture yangu? Plse Salute muwezeshaji 🤣🤣!!

Tunawagonga kila kona SGR, sasa EACOP n soon Bagamoyo port itarudi!
 
At this point this project will continue. It is too far advanced to be stopped by jealous Western environmental activists who want to keep Africa perpetually poor. FID would not have been announced without most of the funds being secured. This project will make Africa richer and the West don't want that. They are attacking this pipeline yet they are building pipelines in their own countries every day.

U forgot receiving backup from Kenya!
 

TotalEnergies and CNOOC Announce FID for $10-Billion Uganda and Tanzania Project

The Lake Albert project includes the development of oil fields, processing facilities, and an electrically heated pipeline network.​

February 2, 2022
By Pam Boschee
Oil and Gas Facilities
The proposed 1,443-km crude oil pipeline will be electrically heated along the entire route.

The proposed 1,443-km crude oil pipeline will be electrically heated along the entire route. East African Crude Oil Pipeline

The Lake Albert development comprises the Tilenga and Kingfisher upstream oil projects in Uganda and the construction of the East African Crude Oil Pipeline (EACOP) in Uganda and Tanzania. The Tilenga project, operated by TotalEnergies, and the Kingfisher project, operated by CNOOC, are expected to start producing in 2025 and to reach a cumulative plateau production of 230,000 B/D.

The upstream partners are TotalEnergies (56.67%), CNOOC (28.33%), and UNOC (15%). Production from the Uganda oil fields will be transported to the port of Tanga in Tanzania on the Indian Ocean through the EACOP cross-border pipeline, whose shareholders are TotalEnergies (62%), UNOC (15%), TPDC (15%), and CNOOC (8%).

Uganda's crude is medium-light 30 °API, low in sulfur but very waxy, with a pour point of 40°C, making it solid at surface temperature. The EACOP website notes that “due to the viscous and waxy nature of Uganda’s crude oil, the pipeline will need to be heated along the entire route, making the EACOP the longest electrically heated pipeline in the world.”

TotalEnergies’ strategy is to only approve new projects if they are low cost and low emissions. The design of the facilities incorporates measures to limit greenhouse-gas emissions well below 20 kg CO2e/BOE, including the extraction of liquefied petroleum gas for use in regional markets as a substitute for burning biomass, and the solarization of the EACOP pipeline.

TotalEnergies and the Ugandan Ministry of Energy and Minerals also signed today a memorandum of understanding (MoU) for the development of solar, wind, geothermal, and other renewable technology power projects with a combined installed electricity output capacity of 1 GW by 2030.

Crude oil reserves were discovered in 2006 by Uganda near its border with the Democratic Republic of Congo. However, disagreements between the government and oil firms over taxes and strategies and a lack of infrastructure caused repeated delays.

Government geologists estimate that the country's gross reserves stand at 6.5 billion bbl, while recoverable oil is seen at 1.4 billion bbl, according to a statement released by the Uganda Media Centre.

"With this project, the two countries are projected to realize their record level of foreign direct investment flows to the tune of $3.5 billion over the period from 2022 to 2025, which is an increase of over 60% compared to the current levels of foreign direct investment flows," Tanzania’s Vice President Philip Isdor Mpango said in the statement.

"This milestone puts us on the path to first oil in 2025," Minister of Energy and Mineral Development Ruth Nankabirwa Ssentamu said in a speech ahead of the signing.



Pam Boschee
Pam Boschee is the managing editor of SPE’s magazines, including the Journal of Petroleum Technology, Oil and Gas Facilities, HSE Now, Data Science and Digital Engineering, and The Way Ahead.

 

Uganda, Tanzania Pen Deal Towards First Oil-EACOP​

2nd February 2022 Godfrey IvudriaComment(0)

By April 2025, Uganda is looking towards selling its first commercial oil through the proposed East African Crude Oil Pipeline (EACOP) with the terminal at the Tanzanian port of Tanga, after the Lake Albert Development Project partners announced the final investment decision (FID) and the launch of the project which will involve an estimated $10 billion. During this development phase, some 160,000 jobs are also expected to be created.

To date, exploration findings indicate there are reserves of about 6.5 billion barrels of crude of which 1.4 billion is commercially recoverable in the Lake Albert region of western Uganda.

TotalEnergies and China National Offshore Oil Corporation (CNOOC) Uganda Limited are taking lead in developing the Tilenga and Kingfisher oilfields respectively.

President Yoweri Museveni officiated at the FID announcement in Kampala on Tuesday, in a colourful event graced by several dignitaries, including diplomats and representatives of the international oil companies.

Museveni told guests, “When this oil project came, I was very happy to see that it goes through Tanzania so that our Tanzanian brothers and sisters also benefit something, given their great contribution (through Mwalimu Julius Nyerere) to Uganda. It is good that his people will benefit from this pipeline.”

The Lake Albert development encompasses the Tilenga and Kingfisher upstream oil projects in Uganda and the construction of the EACOP in Uganda and Tanzania.

The Tilenga and Kingfisher projects are expected to start producing in 2025 and to reach a cumulative plateau production of 230,000 barrels per day.

Patrick Pouyanné, the Chairman and CEO of TotalEnergies said, “The development of Lake Albert resources is a major project for Uganda and Tanzania, and our ambition is to make it an exemplary project in terms of shared prosperity and sustainable development.

We are fully aware of the important social and environmental challenges it represents. We will pay particular attention to using local skills, to develop them through training programs, to boost the local industrial sector in order to maximize the positive local return of this project.”

He said, “With today’s signing of a framework agreement on renewable energy, we are laying the foundation to implement our multi-energy strategy in Uganda and contribute to people’s access to energy.”

The upstream partners are TotalEnergies (56.67%), CNOOC (28.33%), and Uganda National Oil Company (15%). Production from the oil fields in Uganda will be transported to the port of Tanga in Tanzania through the EACOP cross-border pipeline, whose shareholders are TotalEnergies (62%), UNOC (15%), Tanzania Petroleum Development Corporation (15%), and CNOOC (8%).

Representing Tanzania President Samia Suluhu Hassan, Vice President, Dr. Philip Isdor Mpango said, “With this project, the two countries are projected to realise their record level of foreign direct investment flows to the tune of $3.5 billion over the period 2022 to 2025 which is an increase of over 60% compared to the current levels of foreign direct investment flows.”

Highlighting the importance of Local Content energy and mineral development minister, Ruth Nankabirwa said, “I also want to commend Uganda’s private sector for continually building capacity to participate in the oil and gas sector.

It is through the participation of the private sector that the country will be able to optimize the benefits from the oil and gas sector and experience economic transformation.”

She said during 2020, 92% of the supplies and services to the oil and gas sector were provided by Ugandan entities while in 2021, 53% of the supplies and services were from Uganda entities.

According to a statement, TotalEnergies is committed to implementing action plans that will have a net positive impact on biodiversity as part of the implementation of these projects.

In close liaison with the authorities and stakeholders concerned with nature conservation in Uganda and Tanzania, these action plans will be implemented in collaboration with neighboring communities and under the supervision of an independent institution.

TotalEnergies and the Ugandan Ministry of Energy and Minerals also signed a Memorandum of Understanding (MoU) for the development of renewable energy with the objectives of developing 1 GW of installed capacity, promoting access to electricity and clean energy, supporting national climate change objectives through the deployment of carbon footprint reduction projects.

Godfrey Ivudria

https://www.busiweek.com/uganda-tanzania-pen-deal-towards-first-oil-eacop/
 
AFRICA

Uganda, Tanzania Finalize Terms for Oil Drilling and Pipeline Project

February 02, 2022 11:22 AM

FILE - Uganda's President Yoweri Museveni delivers a speech during the ceremony marking the laying of the foundation stone for the starting point of the East Africa Crude Oil Pipeline (EACOP) in Kabaale.

FILE - Uganda's President Yoweri Museveni delivers a speech during the ceremony marking the laying of the foundation stone for the starting point of the East Africa Crude Oil Pipeline (EACOP) in Kabaale.

Uganda and Tanzania signed a deal with Chinese and French oil companies this week finalizing terms of a $10 billion drilling and pipeline project. The project's backers say it will usher in economic development across the region. But Ugandan activists say complaints from communities affected by the project are not being heard.

Civil society organizations have raised red flags again, one day after Ugandan and Tanzanian officials put ink to paper for what they call the Final Investment Decision.

The move opens the way for construction and development of the East African Crude Oil Pipeline connecting future oilfields in Uganda to the Tanzanian port city of Tanga.

However, Ugandan civil society organizations, under their umbrella Stop EACOP, say the $3.5 billion project violates the rights of communities around Lake Albert where oil drilling will take place.

In 2021, the NGO Africa Institute for Energy Governance, which is providing legal support to the affected communities, was raided twice for allegedly operating without a license.

The NGO’s executive director, Dickens Kamugisha, says the attacks were meant to silence them for demanding to see key documents and raising issues such as people’s property rights.

Kamugisha tells VOA that locals may get compensated for the loss of their property but were not given much chance to negotiate.

“They are being forced to open bank accounts. But even those who have opened, they don’t receive the money," said Kamugisha. "Many people haven’t agreed on the compensation rates, but they are being told you have to receive whatever is available. So, the communities are still aggrieved. There are no grievance handling mechanisms. The courts are not functioning, so the people are helpless. People have been made to even become poorer, and more miserable and desperate.”

This week’s agreement was signed between Uganda, Tanzania, the French company Total Energies and the China National Offshore Oil Corporation.

Total Energies faces a lawsuit in France for its failure to prevent human rights violations and environmental damage linked to the project.

The drilling and pipeline have been delayed for years, and Uganda’s President Yoweri Museveni noted that one reason for the delay was the pressure put on Total Energies by civil society groups.

Museveni has been dismissive of the groups, describing members as jobless people moving aimlessly.

‘They go and campaign. They say, Ugandans are not allowing NGO’s to inspect the petroleum operations in Lake Albert," said Museveni. "They are hiding something. So, I appeal to the Ugandans and to the local governments in Buliisa, Kikube, in Nwoya, let the NGO’s go and sleep in the bush if they want.”
When completed, the pipeline is expected to carry about 60,000 barrels of oil to Tanzania per day.

Tanzania’s Vice President Phillip Mpango expressed hope all parties will adhere to labor and environmental laws.

“I’m therefore looking forward to hear that they are committed to implement this project, in an exemplary manner," said Mpango. "Taking into consideration the ecology as well as local community rights.”

Uganda’s oil deposits were first discovered in 2006 and are estimated at 6.5 billion barrels. Assuming the drilling and pipeline go ahead, exports are expected to begin in 2025.

 

Uganda moves to become oil exporting nation by 2025

Fred Ojambo and Paul Burkhardt 1/28/2022



(Bloomberg) - The Uganda National Oil Company plans to sign a final investment decision on Feb. 1 for a large oil field and pipeline project, taking a definitive step toward becoming a crude exporter.

TotalEnergies SE and Cnooc Ltd., along with the East African country’s state oil company, are developing projects expected to reach an output of 230,000 barrels a day -- bigger than some OPEC members on the continent. Ugandan President Yoweri Museveni said last year that an agreement was reached with the companies to start production by 2025.

Signing the final investment decision will allow the process to begin of appointing the main contractors for the development, Peter Muliisa, a spokesman for Kampala-based UNOC, said by phone on Friday. Total wasn’t immediately able to respond to a request for comment.

Commercially viable oil resources were first discovered in Uganda in 2006, but the landlocked country’s path to becoming a crude exporter has faced a number of delays, from changing the route of the planned pipeline to the makeup of the oil companies that are involved. While now poised to break ground, the development still faces opposition from environmental groups that seek to bring an end to the use of fossil fuels, putting some pressure on potential financing sources.

A range of agreements related to the projects were already completed last year. The international companies will develop the fields and a $4.2 billion heated pipeline to transport the waxy crude 1,443-kilometers (897 miles) to the port of Tanga in Tanzania. Total owns a 62% stake in that project, UNOC and Tanzania Petroleum Development Corp. each have 15%, with Cnooc holding the remainder.

Another final investment decision for a planned 60,000-barrel-a-day refinery led by General Electric Co. is expected by the end of 2022, Muliisa said.

 



My Take
Now DRC-Congo, Burundi and South Sudan are next while LNG Lindi is in drafting while negotiations for Bagamoyo port r back!

Hongera zenu waTZ. Kama waKenya it's only natural tungetaka huu mradi upitie kwetu lakini you can't always have it all.

Hata hivyo, ikumbukwe kuwa KE pia tuna mradi wetu wa Lamu pipeline, ambayo itakuwa heated na kuwa buried underground. Itakuwa 6bln USD cheaper than EACOP na inatarajiwa SSD ataunganishwa ili asitegemee Sudan kaskazini pekee. I think by now it's past time ya kujipiga kifua kuhusu EACOP kupitia TZ badala ya KE. The focus should be on how to implement both EACOP na LAMU pipelines.
 
Hongera zenu waTZ. Kama waKenya it's only natural tungetaka huu mradi upitie kwetu lakini you can't always have it all.

Hata hivyo, ikumbukwe kuwa KE pia tuna mradi wetu wa Lamu pipeline, ambayo itakuwa heated na kuwa buried underground. Itakuwa 6bln USD cheaper than EACOP na inatarajiwa SSD ataunganishwa ili asitegemee Sudan kaskazini pekee. I think by now it's past time ya kujipiga kifua kuhusu EACOP kupitia TZ badala ya KE. The focus should be on how to implement both EACOP na LAMU pipelines.
Aawapi kwanza gharama ya huu mradi wa EACOP inajumuisha na refinery aside develping the oil fields!Sidhani kama Lamu pipeline itakuwa cheaper than EACOP unless hamtakuwa na refinery! Kingine Museveni kasema EACOP itaunganishwa na DRC, South Sudan and Burundi.
 
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