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Uganda: McDermott receives conditional Letter of Award for EPCC Contract of Tilenga Project


10 Jun 2021

Photo - see caption

Ugandan Onshore Oil Fields Expected to Generate 200K BPD, Bolster Economic Growth

A consortium of a subsidiary of McDermott International and Sinopec International Petroleum Service Corporation has received a conditional Letter of Award for the future contract valued at approx. $2 billion from Total for the Tilenga project. Formal contract award remains subject to Tilenga Partners approval. The Tilenga project is located in the Lake Albert Basin, Republic of Uganda and is the centerpiece of oil projects projected to bring investments of over $10 billion to Uganda and Tanzania. Tilenga includes six oil fields and will feature 426 oil wells at full production.

The consortium will provide engineering, procurement, construction and commissioning (EPCC) services for the development of an onshore oil field that will generate up to 200,000 barrels per day (BPD). It will consist of 31 well pads connected to a central  processing facility (CPF) via buried flowlines.

'This is a first step which allows launching the detailed engineering and procurement activities before the final approval by the Partners. This prestigious project demonstrates the continuity and strength of our business relationship with TotalEnergies and their partners CNOOC International of China and Uganda National Oil Company (UNOC),' said Tareq Kawash, Senior Vice President, Europe, Middle East, Africa. 'This is a momentous and essential project for Uganda for the development of its national companies and citizens—and as we continue to grow our footprint in Africa, we are committed to expanding local content opportunities in the communities in which we operate.'

The project will stimulate economic growth in Uganda and create up to 20,000 direct and indirect jobs, bringing a significant number of meaningful training opportunities for the local labor force. McDermott is committed to implementing these projects in a manner that fully addresses the sensitive environmental context and the needs of all stakeholders in the area.

'This important step further strengthens years of successful collaboration with TotalEnergies on a wide portfolio of world-class projects in the Offshore, Petrochemicals and LNG segments - where TotalEnergies is a major stakeholder,' said Samik Mukherjee, McDermott's Group Senior Vice President for Projects.

The project will be led from McDermott's offices West of London, United Kingdom and Sinopec's office in Yangzhou, China, before transitioning to Uganda for the construction activities. Work began in second quarter 2021 and first oil is expected in 2025.

Tilenga

Photo - see caption
Source: TotalEnergies

According to information on the TotalEnergies web site, Tilenga is located in the Buliisa and Nwoya districts in the Lake Albert, the Tilenga project is operated by TotalEnergies (56.6%), in partnership with CNOOC and UNOC. It includes the development of six fields and the drilling of around 400 wells from 31 locations.

Production will be delivered through buried pipelines to a treatment plant built in Kasenyi, for the separation and treatment of the fluids (oil, water, gas. All of the water produced will be reinjected into the fields and the gas will be used to produce the energy needed for the treatment process. Surplus electricity will be exported to the pipeline and the Ugandan grid.

One of the fields developed is located inside Murchison Falls Park. The others are located outside the Park, south of the Victoria Nile in sparsely populated rural areas and activities that are essentially agricultural.

Original article link

Source: McDermott / energy-pedia





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