TotalEnergies and its partners have taken the final investment decision (FID) on the Lake Albert development project in Uganda, which calls for an investment of around $10bn.
The FID was announced during the launch of the onshore oil project by Uganda President Yoweri Museveni, Tanzania Vice-President Philip Mpango, and other dignitaries.
The Lake Albert project involves the development of the Tilenga and Kingfisher upstream oil projects in Uganda as well as the construction of the East African Crude Oil Pipeline (EACOP), a 1,443km long export pipeline between Uganda and Tanzania.
Originally, the FID on the oil project was to be taken in 2017 and production was expected to begin by the end of 2020. However, the Ugandan oil project faced delays caused by various factors such as oil market crisis and tax disputes among others.
TotalEnergies chairman and CEO Patrick Pouyanné said: “The development of Lake Albert resources is a major project for Uganda and Tanzania, and our ambition is to make it an exemplary project in terms of shared prosperity and sustainable development.
“We are fully aware of the important social and environmental challenges it represents.
“We will pay particular attention to use local skills, to develop them through training programs, to boost the local industrial sector in order to maximise the positive local return of this project.”
Located in the Lake Albert Rift Basin, the Tilenga and Kingfisher oil fields are expected to begin production in 2025. Together, the fields are estimated to achieve a cumulative plateau production of 230,000 barrels per day (bpd).
TotalEnergies is the operator of the Tilenga field, located in the Buliisa and Nwoya districts. The Kingfisher field, which is operated by China National Offshore Oil Corporation (CNOOC), is located on the eastern bank of Lake Albert.
The stakeholders in the upstream component of the Lake Albert development project are TotalEnergies (56.67%), CNOOC (28.33%), and the Uganda National Oil Company (UNOC), which has a 15% stake.
The shareholders in the EACOP asset are TotalEnergies (62%), UNOC (15%), Tanzania Petroleum Development Corporation (TPDC) with a 15% stake, and CNOOC (8%).
The EACOP pipeline, which is estimated to cost $3.5bn, will transport the oil produced by the Tilenga and Kingfisher fields to the Tanga port in Tanzania.
Apart from announcing the FID on the oil project, TotalEnergies has signed a memorandum of understanding (MoU) with the Ugandan Ministry of Energy and Minerals for developing 1GW of renewable energy capacity in the African country.
