Special thread: EACOP updates

Special thread: EACOP updates

Mambo inogile huku.


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Ina maana mabeberu hawajaona huu mradi ili wakapige kelele za kupinga??

Au sisi ndiyo wanyonge wa kuambiwa na mabeberu nini tunapaswa kufanya?


SABIC, ARAMCO, Sinopec Signed MOU for Yanbu Petrochemical Complex​



 
Siyo utafanyika, bali unafanyika kwa kasi ya ajabu. Na ndiyo maana kila mara ajira za kutosha zinatangazwa.
Basi Mungu aubariki huu mradi ukamilike na wale vijana wakenya wanaoupinga awaumbue mchana kweupe.
 
Siyo utafanyika, bali unafanyika kwa kasi ya ajabu. Na ndiyo maana kila mara ajira za kutosha zinatangazwa.
Naomba connection ya ajira mkuu wangu. jua limekuwa kali sana mtaani huku
 

Govt approves EACOP construction licence​

Wednesday, January 18, 2023
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Mr Ramathan Ggoobi (2nd right), the permanent secretary in the Finance ministry, stands near oil drilling conductor pipes in the Kingfisher oilfields during a tour of the oil facilities in the Albertine Graben in April 2022. PHOTO/FILE
By Frederic Musisi

What you need to know:​

  • The development spells bad news for environment activists who have opposed the project.
Cabinet yesterday approved the awarding of the construction licence for the proposed East African Crude Oil Pipeline (EACOP), subject to conditions including securing all necessary consents and permits.

Other conditions are, the EACOP Company shall establish the main control for monitoring the 1,143km duct from Hoima in mid-western Uganda to Chongleani terminal at Tanzania’s Indian Ocean Tanga port, and consulting and seeking approval from authorities for any deviation from the current pipeline route, among others.
READ: Russian firm ejected from oil pipeline deal

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The $4b (Shs13trillion) pipeline, which will transport Uganda’s waxy crude oil to Tanga en route to the international market, traverses 27 sub-counties, three town councils and 171 villages in 10 districts of Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Sembabule, Lwengo, Rakai and Kyotera.
The Acting Director of the Petroleum Directorate, Honey Malinga told Monitor last evening the attendant conditions “are imperative to guide” the project construction process.”
“The conditions are for addressing those areas of doubt, so you don’t want anyone to say I didn’t know or I wasn’t told,” Mr Malinga said.
The EACOP Company executives submitted the applications for construction licences simultaneously in Uganda and Tanzania in early July last year. The application for the licence in Uganda was submitted to the Petroleum Department, the policy arm of the ministry of Energy.
The Tanzanian construction licence was also approved and is due for issuance in the coming days
The review of the application was initially supposed to take 180 days but the process was dragged by several bureaucratic headwinds including the EACOP Company having to first pay application fees.

The application for the licence is a requirement under Midstream (pipeline, refinery) legislations including the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 2013, and the Petroleum (Exploration, Development and Production) Act, 2013.
Energy Minister, Ms Ruth Nankabirwa, who is currently accompanying President Museveni in Abu Dhabi, will headline the licence issuance in the coming weeks.
ALSO READ: We need information on EACOP
The issuance of the construction licences brings the development of the multi-billion-dollar project one step closer and lands a slap in the faces of more than a dozen local and international NGOs that in recent months mounted a blistering campaign to pressure financial institutions around the world to walk away from the project.
Unbothered financiers
After swaying the majority of the European Union MPs last September to pressure French TotalEnergies, the lead on the project, to delay the project for at least one year, NGOs had further hoped to rally world governments at the COP27 summit held in Egypt in November to come out strong on oil projects, including the EACOP.
However, the summit did not stop ongoing and planned oil projects. Rather, several countries underlined the need for energy security to avert any future disruptions suffered in the aftermath of Russia’s invasion of Ukraine.
Meanwhile, the EACOP company executives have continued to keep the cards close to the chest about the project financiers. Acquisition of the project right of way, including compensating affected persons, is also continuing on both sides of the border.

Compensation continues
There are 3, 648 project-affected persons in Uganda, of which only 206 are physically affected while 179 opted for their houses to be rebuilt for them. Also, some 2, 866 project-affected persons have signed compensation agreements, of which 2, 468 have so far received their cash compensations for either land or crops.
In Tanzania, there are 9, 510 project-affected persons, of which 96 percent or 9,111 persons have signed compensation agreements out of which 8,672 persons have received their cash compensations. The Tanzania section runs for 1,147km through 25 districts and eight regions.
The EACOP Company executives remain bullish that project construction will commence later this year, other factors kept constant.
China Petroleum Pipeline Engineering (CPPP) will lead the construction works for the project development coordinated by Australia’s WorleyParsons Ltd which was awarded the Engineering, Procurement, and Construction Management (EPCM) tender.
French TotalEnergies holds a 62 percent stake in the project while Uganda and Tanzania each hold 15 percent, and Chinese oil company, CNOOC, has eight percent.
 

Uganda in 2023: Oil sector to open doors

Saturday, December 31, 2022
By Frederic Musisi

What you need to know:​

  • Ugandans will benefit from offering services including security, hotel accommodation, human resource management, office supplies, fuel supply and environment studies.
Other factors kept constant, President Museveni is next month slated to commission the Kingfisher oil rig to start early drilling.

The event had initially been planned for mid-December, but was deferred as China National Offshore Oil Corporation (Cnooc) required third approval and fine-tuning of the assemblage.
READ: ‘Uganda must add value to oil’

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The haulage of the LR8001 from its production plant in China and assembly at the Kingfisher oil field in Kikuube District was one of the major highlights of the year for the sector, adding impetus to ongoing plans to start commercial oil production in the last quarter of 2025.
The rig will be used to drill 33 oil wells at the Kingfisher development area that straddles Hoima and Kikuube districts.
China Oilfield Services (COSL) Uganda Smc Ltd, which is contracted by Cnooc to undertake drilling works of the oil wells, subcontracted local logistics company, RI Distributors Ltd, which contracted a joint venture of local companies to clear the rig through the customs bureaucracy at Mombasa and haulage to Kikuube.
While transport and logistics is one of the industries ring-fenced for Ugandans, the haulage of the rig—which required 250 trucks by local companies—pointed to enough local capacity built.
Three additional rigs for the Tilenga oil project operated by TotalEnergies EP are underway. One rig will be deployed in the Murchison Falls National Park in Nwoya District, and two rigs south of the Nile in Buliisa District.
This momentum was set in motion from February 1, when the joint venture partners, TotalEnergies EP, Cnooc, and Uganda National Oil Company (Unoc) announced the Final Investment Decision (FID) for development of the Kingfisher and Tilenga projects, respectively, and the East African Crude Oil Pipeline (Eacop) that will transport Uganda’s crude oil from mid-western Uganda to Tanzania’s Indian Ocean Tanga port en route to the international market.

The announcement ceremony held at Kololo Independence Grounds, where 16 years earlier President Museveni publicised the discovery of commercial oil deposits, was graced by the chairman of TotalEnergies SE, Mr Patrick Pouyanne, and Tanzania’s Vice President Phillip Mpango, accompanied by a 30-person entourage.
At least $4 billion (Shs14.8 trillion) is for the development of Eacop, $3 billion (Shs11.08 trillion) for Kingfisher, and $4 billion (Shs14.8 trillion) for Tilenga.
Uganda, through its national oil company, Unoc, has a 15 percent participating stake in each of the multi-billion projects.
The Tilenga project is expected to produce 190,000 barrels of oil per day (bpd) during peak production, while the Kingfisher project will pump 40,000 bpd.
FID unlocked the single highest-value project in the country since independence. Officials expect investments in the ongoing engineering and construction phases to start commercial oil production to climb to $15 billion (Shs55 trillion).
Raining petro-dollars
The multiplier effect will be realised through Ugandans being employed across the board and Ugandan companies participating in the provision of goods and services across the value chain, tax and non-tax revenues, resource management, and technology transfer.
Ugandans and Ugandan companies are expected to rake in $4.2 billion (Shs15.5 trillion) through the provision of goods and services.
The auxiliary industries ring-fenced for Ugandans are security; foods and beverages; hotel accommodation and catering; human resource management; office supplies; fuel supply; clearing and forwarding; construction materials; civil works; environment studies, and impact assessments; communications and information technology services; and—where possible—waste management.

ALSO READ: Past, present and future of Uganda’s oil
Amid the ongoing macroeconomic turbulence occasioned by the pandemic and the Russia-Ukraine war, the Secretary to the Treasury—Mr Ramathan Ggoobi—last week said the peaking of spending oil activities is the silver lining for the troubled economy to improve fairly during the 2023/2024 Financial Year.
According to the oil sector regulator, the Petroleum Authority of Uganda (PAU), by 2021 cumulative investments in the sector stood at $4.8 billion (Shs17.7 trillion) as of the end of 2022.
Between 2021 and 2022, more than 163 contracts were awarded for the development and construction phase. Nearly 100,000 people are currently employed across the value chain while more than 1 million people are expected to migrate to the Albertine Graben during the construction phase between 2023 and 2024 in search of greener pastures.
Mid-last year TotalEnergies EP awarded the Engineering, Procurement, Supply, Construction, and Commissioning (EPSCC) tender to a consortium of McDermott/Sinopec for development of the Tilenga oil project—oil fields in Nwoya and Buliisa districts.
Additionally, 10 contracts for the drilling and management of Tilenga oil wells were awarded.
The contractors, include ZPEB Uganda Company Ltd, which was awarded a contract for detailed design and construction of drilling rigs to be used on 426 wells; casting and tubing to Vallourec; mud logging to Exlog; and drill waste management.
ALSO READ: EACOP is on course, to be ready by 2025, says UNOC

EnviroServ China Oilfield Services Ltd was awarded two contracts for electrical logging, and another for drilling fluids, cementing and solids control.
Schlumberger was awarded four contracts that include directional drilling, logging, drilling bits and real time operations; wellheads and Xmas trees; lower completion; upper completion and artificial lift. A separate contract was for civil works, including bush clearing, fencing, and construction of feeder roads and drainage, at the industrial area spanning 700 acres for Tilenga to MotaEngil, which subcontracted work to several companies such as Prand Engineering, Fabrication Systems, Civtec, Gauff Consultants.
The industrial park will host, among others, the Central Processing Facility (CPF), construction camps, and operational bases.
ALSO READ: Tracing Uganda’s oil journey
MotaEngil was also awarded the contract for the construction of 31 well pads, installation of conduit pipes, among others.
A CPF is where oil will be stored for stabilisation and treatment before being fed into either the proposed refinery or pipeline.
A second CPF is planned at Cnooc’s Kingfisher project in Hoima. Civil works and construction of well pads 1, 2 and 3, and construction of feeder access roads at Kingfisher was awarded to Excel Construction Company Ltd.
According to PAU, the value of procurements signed off between 2017 and June 2022 stood at $4 billion (Shs14.4 trillion) of which $1.6 billion (Shs5.7 trillion) went to Ugandan companies.
The start of commercial oil production, according to the World Bank, offers Uganda long-term prospects to diversify the economy and catapult it to upper middle-income status by 2040.
 
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