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In a statement, McDermott estimated the value field, while gas will be used to generate electric-
of the proposed deal at $2bn. It explained that ity for the treatment facility. If there is surplus
LoA covered an engineering, procurement, con- electricity, TotalEnergies will use it to power the
struction and commissioning (EPCC) contract East Africa Crude Oil Pipeline (EACOP), which
under which the consortium would establish an will carry oil from the Tilenga and Kingfisher
onshore production complex capable of extract- fields to Tanzania’s coast, and to supply Uganda’s
ing up to 200,000 barrels per day (bpd) of crude national grid.
oil from the Tilenga field. When finished, it said, Total Energies is serving as operator of
the complex will consist of 31 well pads linked to Tilenga and has a 56.67% stake in the project.
a central processing facility (CPF). The remaining equity is split between CNOOC
Work on the project is already underway and International, a subsidiary of China National
is being led from McDermott’s offices near Lon- Offshore Oil Corp. (CNOOC), with 28.33%,
don and SIPSC’s office in Yangzhou, the state- and UNOC, with 15%. ™
ment noted. Team members will shift to a field
office in Uganda later to launch construction, it
added.
Tareq Kawash, McDermott’s senior
vice-president for Europe, the Middle East and
North Africa, commented: “This is a first step
which allows launching the detailed engineer-
ing and procurement activities before the final
approval by the partners. This prestigious pro-
ject demonstrates the continuity and strength
of our business relationship with TotalEnergies
and their partners CNOOC International of
China and Uganda National Oil Co. (UNOC).”
Kawash also said he expected McDermott’s
work to contribute to economic development
in Uganda. “This is a momentous and essen-
tial 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 opportu-
nities in the communities in which we operate,”
he said.
McDermott and SIPSC will be working at
the Tilenga field, which straddles Blocks 1 and
2 in western Uganda. TotalEnergies intends to
establish six production hubs at the field and will
eventually drill 426 development wells there. It
will use underground pipelines to pump what
it extracts to a treatment facility in Kasenyi so
that associated gas and water can be separated
out of the oil.
In turn, water will be re-injected into the Tilenga is to the north of Lake Albert in western Uganda (Image: CNOOC)

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