French oil and gas company Total and its partners have signed final agreements to launch the Lake Albert resources development project in Uganda and Tanzania.
The partners include China National Offshore Oil Corporation (CNOOC), Uganda National Oil Company (UNOC) and Tanzania Petroleum Development Corporation (TPDC).
The Lake Albert project includes 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 is operated by Total, while the Kingfisher project is operated by CNOOC. The two projects are expected to deliver a combined production of 230,000 barrels per day.
Total chairman and chief executive officer Patrick Pouyanné said: “The Tilenga development and EACOP pipeline project are major projects for Total and are consistent with our strategy to focus on low breakeven oil projects while lowering the average carbon intensity of the Group’s upstream portfolio.
“These projects will create significant in-country value for both Uganda and Tanzania.
“Total is also taking into the highest consideration the sensitive environmental context and social stakes of these onshore projects. Our commitment is to implement these projects in an exemplary and fully transparent manner.”
Total, CNOOC and UNOC are the partners in the upstream projects, with a stake of 56.67%, 28.33%, and 15%, respectively.
Oil produced at the Tilenga and Kingfisher projects is planned to be transported to the port of Tanga in Tanzania through 1,445km EACOP cross-border pipeline.
The Ugandan section of the pipeline will be 296km-long and will run for 1,149km in Tanzania.
Total, UNOC, TPDC and CNOOC will be shareholders in the pipeline, which will be built with a total investment of $3.5bn.
First oil export from the project is expected to take place in early 2025.
Recently, Total has signed a deal with the Iraqi Oil Ministry to make multi-billion dollar investment in four energy projects in southern Iraq.
