Page 6 - AfrOil Week 16 2021

AfrOil PIPELINES & TRANSPORT AfrOil

Tanzanian negotiators submit report

on EACOP land acquisition efforts

TANZANIA TANZANIA’S Minister of Energy and Miner- link will follow a 1,445-km path from Hoima,
als Medard Kalemani said earlier this week that a town in western Uganda, to Tanga, a port on
government negotiators had submitted their Tanzania’s coast. It will handle 216,000 barrels
report on the process of land acquisition for per day (bpd) of oil from Blocks 1, 1A, 2 and 3A
the East Africa Crude Oil Pipeline (EACOP) in western Uganda, which are home to the King-
project. fisher and Tilenga fields. These fields are due to
Speaking to reporters in Dar es Salaam, Kale- begin production in 2025 and will eventually
mani stated that the Government Negotiation yield at least 260,000 bpd of crude.
Team (GNT) had finalised and submitted the The pipeline will be built by a consortium in
report. This move should allow work on EACOP which France’s Total will serve as the operator
to begin soon, since it clears one of the last and have a 37.5% stake. The remaining equity
administrative hurdles to the project, he said. will be divided between China National Off-
The minister did not divulge many details shore Oil Corp. (CNOOC) with 37.5%; Uganda
of the GNT report. He did say, though, that the National Oil Co. (UNOC) with 15% and Tan-
team had confirmed estimates showing that zania Petroleum Development Corp. (TPDC)
the Tanzanian government had paid TZS28.8 with 5%. Both Total and CNOOC are involved
($12.42mn) in compensation to residents of in developing the oilfields that will provide
areas along the planned route of the oil pipeline. throughput for the pipeline; the former com-
“The team worked for three years and it was pany serves as operator of Tilenga, while the
not an easy task ... We are happy that the task latter is leading work at Kingfisher. ™
is completed,” he commented, according to the
Tanzania Daily News.
Kalemani went on to say that he expected
construction work on EACOP to take three
years. During this period, Tanzanian companies
will have the opportunity to provide the pipeline
consortium with services in areas such as cater-
ing, construction, engineering, logistics, mate-
rials procurement and security, he stated. The
government will set up awareness and training
programmes to help local firms succeed in their
bids for such contracts, he declared.
The EACOP project is expected to create
10,000-15,000 direct jobs in Tanzania during
the three-year construction period, he added.
Around 80% of these jobs are likely to go to Tan-
zanian citizens, he said.
According to previous reports, the EACOP EACOP will be 1,445 km long (Image: African Energy Chamber)

INVESTMENT
Egypt’s Petroleum Ministry to invest

$100mn in new bioethanol company

EGYPT EGYPT’S Petroleum Ministry is set to invest the Egyptian Company for Bioethanol on land
$100mn into a new state-run bioethanol pro- belonging to Egyptian General Petroleum Co.
duction initiative. (EGPC), the government-owned upstream
The ministry has said it plans to establish operator, in the port of Damietta.

P6 www. NEWSBASE .com Week 16 21•April•2021