The Sunk Cost Fallacy 2
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EACOP vs Lamu pipeline
EACOP vs Lamu pipeline
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The Sunk Cost Fallacy 2
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Uganda Approves Construction License for EACOP
The East African Crude Oil Pipeline (EACOP) Company has been awarded the construction license for the 1,443km EACOP from the Ugandan Cabinet.
The license approval follows the filing of the application with the Petroleum Department at the Ministry of Energy and Mineral Development of Uganda in July 2022, with construction set to commence following the company securing all the required regulatory permissions from the various legislative bodies.
Upon developing the main control monitoring system for the 1,443km project, the EACOP Company can go ahead with the construction of the $4 billion pipeline.
Commenting on the permissions which the EACOP Company will need to secure before going ahead with the construction, Honey Malinga, Acting Director, Petroleum Directorate, stated that the conditions are there to guide the construction process of the project, and that are for “addressing those areas of doubt, so you don’t want anyone to say I didn’t know or I wasn’t told.”
The project will be built across 27 sub-counties, three town councils and 171 villages in 10 districts, with China Petroleum Pipeline Engineering conducting the construction works and Australia’s Worley Parson providing engineering, procurement and construction management services.
Co-owned by global energy major, TotalEnergies, the Uganda National Oil Company, China National Offshore Oil Corporation Uganda and the Tanzania Petroleum Development Corporation, the pipeline will provide a gateway for the East African country to transport crude oil developed from the Tilenga and Kingfisher oilfields for export to both regional and international markets via the Port of Tanga in Tanzania.
The pipeline represents part of the larger Lake Albert Development, in which TotalEnergies announced a $10 billion Final Investment Decision in 2022.
The construction license milestone follows the Tanzanian government approving the construction of 1,147 km section of the pipeline in Tanzania and the EACOP Company finalizing the environmental and social impact assessment study for the project.
Upon completion, the pipeline will enable the Ugandan government to earn $400 million in revenue in the form of tax and dividends.
Nicholas Nhede
Nicholas is an energy sector journalist with a passion on how technology and diversification of the energy mix can be used to address energy sector challenges. Nicholas holds a diploma in Journalism and Communication studies and has been covering energy-related topics including the Internet of Things, distributed energy and digitalisation since 2015.
Uganda Approves Construction License for EACOP
The Ugandan government has approved the construction license for the 1,443km EACOP pipeline.
energycapitalpower.com
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Commentary
PRIME
Uganda’s Oil journey: Point of no return
Saturday, January 28, 2023
Elison Karuhanga
By Elison Karuhanga
Columnist
What you need to know:
The Kingfisher oil field is just one of 21 oil and gas fields in Uganda. It has 560 million barrels of oil of which an estimated 190 million barrels will be produced from the field.
On January 24, Cnooc Uganda Limited launched its drilling operation at a colourful ceremony in Kikuube District, at the Kingfisher oil field. The company held a public viewing of the drilling rig and launched what is known as spudding of the oil wells at Kingfisher; spudding means beginning to drill an oil well.
The Kingfisher oil field is just one of 21 oil and gas fields in Uganda. It has 560 million barrels of oil of which an estimated 190 million barrels will be produced from the field. The rig which is on the Kingfisher site is a state of the art drilling rig that was tailor made for the Kingfisher oil field. It is the first 8,000 metre fully automated silent rig in Africa and represents a substantial milestone in the development of Uganda’s oil fields. Hundreds of oil wells will be drilled. The Kingfisher spudding represents the start of the final lap in the long journey to first oil.
It is exactly a year since the final investment decision was taken and more than a decade since exploration was first done at Kingfisher and oil discovered there.
The spudding of the Kingfisher oil wells was officially launched by President Museveni and was attended by a number of dignitaries. In many a speech, the pioneers of Uganda’s oil industry took the opportunity to reflect on the country’s oil journey.
As we listened to the speeches, I recalled those famous words that Nelson Mandela wrote in his autobiography, “... when you climb one hill you realize that there are still many more hills to climb.” He added, “I have taken a moment here to rest, to steal a view of the glorious vista that surrounds me, to look back on the distance I have come. But I can rest only for a moment… and I dare not linger, for my long walk is not yet ended.”
Similarly, in Uganda, there are “many more hills to climb” in the journey to first oil. For oil to flow, it will take more than the spudding at the Kingfisher oilfield. We will see the construction of two central processing facilities; a number of feeder pipelines; water abstraction plants, the construction of the Eacop pipeline and the construction of the refinery. On January 24, there was more than one momentous occasion at Kingfisher for it is here that Eacop received its construction licence from the Government of Uganda. At Kingfisher we shall not just see an oil field but we shall also see a central processing facility that will process the crude oil from the Kingfisher field and subsequently from the Waraga, Mputa and Nzizi oil fields. This small part of Uganda, near the Congo border, will play a significant part in the economic future of Uganda.
The central question is, after first oil is achieved, how will we ensure it spurs growth and makes a positive contribution to the Ugandan economy? Substantial steps need to be taken to ensure that the oil resource is optimally managed. That too is a significant hill to climb.
The spudding of the Kingfisher oil field signified that the Ugandan oil project had crossed the rubicon and reached the point of no return. It is fair to say that the project is now unstoppable.
It is precisely for this reason that many speakers including the President took “.. a moment to rest and view the glorious vista that surrounded them”, literally and figuratively. Many of them were part of the history that had led the country to the Kingfisher oil field on a sunny January day.
The decision to go full speed ahead with this project will certainly pay off. Whether we have support from political leaders in the West or not it is clear that Uganda has taken the sovereign decision to develop this resource.
In his speech, at Kingfisher, President Museveni said, “Africa is increasingly in control of its own destiny and no longer needs to rely on other countries to promote its economic development.” It has been an uphill climb for Africa and while we still have “many mountains to climb”, Uganda is now at a point of no return.
The writer is an advocate and partner at Kampala Associated Advocates
elisonk@kaa.co.ug
www.monitor.co.ug
PRIME
Uganda’s Oil journey: Point of no return
Saturday, January 28, 2023
Elison Karuhanga
By Elison Karuhanga
Columnist
What you need to know:
The Kingfisher oil field is just one of 21 oil and gas fields in Uganda. It has 560 million barrels of oil of which an estimated 190 million barrels will be produced from the field.
On January 24, Cnooc Uganda Limited launched its drilling operation at a colourful ceremony in Kikuube District, at the Kingfisher oil field. The company held a public viewing of the drilling rig and launched what is known as spudding of the oil wells at Kingfisher; spudding means beginning to drill an oil well.
The Kingfisher oil field is just one of 21 oil and gas fields in Uganda. It has 560 million barrels of oil of which an estimated 190 million barrels will be produced from the field. The rig which is on the Kingfisher site is a state of the art drilling rig that was tailor made for the Kingfisher oil field. It is the first 8,000 metre fully automated silent rig in Africa and represents a substantial milestone in the development of Uganda’s oil fields. Hundreds of oil wells will be drilled. The Kingfisher spudding represents the start of the final lap in the long journey to first oil.
It is exactly a year since the final investment decision was taken and more than a decade since exploration was first done at Kingfisher and oil discovered there.
The spudding of the Kingfisher oil wells was officially launched by President Museveni and was attended by a number of dignitaries. In many a speech, the pioneers of Uganda’s oil industry took the opportunity to reflect on the country’s oil journey.
As we listened to the speeches, I recalled those famous words that Nelson Mandela wrote in his autobiography, “... when you climb one hill you realize that there are still many more hills to climb.” He added, “I have taken a moment here to rest, to steal a view of the glorious vista that surrounds me, to look back on the distance I have come. But I can rest only for a moment… and I dare not linger, for my long walk is not yet ended.”
Similarly, in Uganda, there are “many more hills to climb” in the journey to first oil. For oil to flow, it will take more than the spudding at the Kingfisher oilfield. We will see the construction of two central processing facilities; a number of feeder pipelines; water abstraction plants, the construction of the Eacop pipeline and the construction of the refinery. On January 24, there was more than one momentous occasion at Kingfisher for it is here that Eacop received its construction licence from the Government of Uganda. At Kingfisher we shall not just see an oil field but we shall also see a central processing facility that will process the crude oil from the Kingfisher field and subsequently from the Waraga, Mputa and Nzizi oil fields. This small part of Uganda, near the Congo border, will play a significant part in the economic future of Uganda.
The central question is, after first oil is achieved, how will we ensure it spurs growth and makes a positive contribution to the Ugandan economy? Substantial steps need to be taken to ensure that the oil resource is optimally managed. That too is a significant hill to climb.
The spudding of the Kingfisher oil field signified that the Ugandan oil project had crossed the rubicon and reached the point of no return. It is fair to say that the project is now unstoppable.
It is precisely for this reason that many speakers including the President took “.. a moment to rest and view the glorious vista that surrounded them”, literally and figuratively. Many of them were part of the history that had led the country to the Kingfisher oil field on a sunny January day.
The decision to go full speed ahead with this project will certainly pay off. Whether we have support from political leaders in the West or not it is clear that Uganda has taken the sovereign decision to develop this resource.
In his speech, at Kingfisher, President Museveni said, “Africa is increasingly in control of its own destiny and no longer needs to rely on other countries to promote its economic development.” It has been an uphill climb for Africa and while we still have “many mountains to climb”, Uganda is now at a point of no return.
The writer is an advocate and partner at Kampala Associated Advocates
elisonk@kaa.co.ug
Uganda’s Oil journey: Point of no return
It is possible to lift our people out of poverty and conserve the environment
www.monitor.co.ug
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