Page 11 - DMEA Week 16 2021

DMEA PIPELINES DMEA

Tanzanian negotiators submit

report on EACOP land acquisition

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

Week 16 22•April•2021 www. NEWSBASE .com P11