A UK-China based consortium has announced it has received a conditional Letter of Award for the future contract valued at approximately $2 billion from Total for the Tilenga project.
UK-based McDermott International, Ltd and China-based Sinopec International Petroleum Service Corporation announced the Letter of Award for provision of engineering, procurement, construction and commissioning (EPCC) services for the development of an onshore oil field – consisting 31 well pads connected to a central processing facility (CPF) via buried flowlines – that will generate up to 200,000 barrels per day (BPD).
According to a press release by McDermott International, formal contract award remains subject to Tilenga Partners approval.
The Tilenga project is located in the Lake Albert Basin and is the center piece 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.
“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 Total Energies and their partners CNOOC International of China and Uganda National Oil Company (UNOC),” Tareq Kawash, Senior Vice President, Europe, Middle East, Africa, said in a statement.
“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 is expected to stimulate economic growth in Uganda and create up to 20,000 direct and indirect jobs. 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 Total Energies on a wide portfolio of world-class projects in the Offshore, Petrochemicals and LNG segments—where Total Energies is a major stakeholder,” Samik Mukherjee, McDermott’s Group Senior Vice President for Projects, said in a statement.
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.
The governments of Uganda and Tanzania and the Joint Venture Partners have recently signed four key agreements putting a project framework in place for the commencement of the development phase OF Uganda’s oil and gas. A Final Investment Decision by the International Oil Companies is expected anytime soon to unlock a $20 billion investment.
