Page 11 - DMEA Week 25 2022

DMEA PIPELINES DMEA

Tanzanian, Ugandan insurers sign

deal on premiums for EACOP

AFRICA TANZANIAN and Ugandan insurance provid- are key players in this project,” he added.
ers have struck a deal on the establishment of a EACOP is the midstream component of
consortium that will ensure the uniformity of the $10bn Lake Albert Development Project
premiums for local contractors involved in the (LADP), under which France’s TotalEner-
East Africa Crude Oil Pipeline (EACOP) project, gies and China National Offshore Oil Corp.
The Citizen has reported. (CNOOC) will extract crude from the King-
Under an agreement signed at the weekend, fisher and Tilenga oilfields in western Uganda
the Uganda Association of Insurers (UAI) and and deliver it to market. The fields are expected
the Association of Tanzania Insurers (ATI) are to yield about 260,000 barrels per day (bpd) of
now slated to form a consortium that will set a oil, and EACOP will carry 216,000 bpd along a
5% premium for local companies, as stipulated 1,443-km route from Hoima in Uganda’s Kabaale
in the local content clause of the EACOP final district to the Chongoleani Peninsula near the
investment decision (FID). This arrangement Tanzanian port of Tanga.
is expected to encourage international oil com- The cost of building the EACOP link is likely
panies (IOCs) to use local insurers rather than to reach $5bn. The project will be carried out
sticking to their own offshore providers. by a special-purpose company split between
“The consortium will enable us to speak the TotalEnergies, with 62%; Uganda National Oil
same language. We insure oil and gas for the first Co. (UNOC), with 15%; Tanzania Petroleum
time so we didn’t have enough necessary skills. Development Corp. (TPDC), with 15%; and
The percentage agreed is 5% of retention and we CNOOC, with 8%.
will work closely together on this,” UAI chair- The special-purpose company is currently
man Latimer Mukasa is quoted as saying by The concluding the process of contract awards with
Citizen. the aim of launching construction work in July.
“We had a very good day. We met with Tan- EACOP is due to be completed in 2025 and will
zania Insurance Regulatory (TIRA), National be the longest heated crude oil pipeline in the
Insurance Corp. (NIC) and Tanre because those world.™

Chevron signs MoU with EGAS

for East Med gas infrastructure

MEA THE US oil major Chevron signed a memoran- It was reported in March that Chevron is
dum of understanding (MoU) with state-owned pressing ahead with plans to build a 60-km
Egyptian Gas Holding Co. (EGHC) on June 20 onshore pipeline to connect Israel’s southern gas
concerning co-operation in building infrastruc- network, which handles gas from the Tamar and
ture for the transportation of natural gas from Leviathan fields, with that of Egypt in the Sinai
East Mediterranean fields to LNG plants in Peninsula. The US major and its partners are
Egypt for export. currently waiting to receive permits to greenlight
The MoU calls for the formation of a commit- the construction of the $100-150mn pipeline,
tee to jointly discuss and develop future projects which will be able to deliver 6-7bn cubic metres
and study the possibility of producing low-car- per year of gas directly to Egyptian LNG plants.
bon LNG. At least one of the projects under con- Also on June 20, Chevron’s chairman Mike
sideration would facilitate the movement of gas Wirth announced after a meeting with Pres-
from Israel’s Leviathan gas field to Egypt’s two ident Abdel Fattah El Sisi that his company’s
existing LNG plants. plans for exploration and production in Egypt
Leviathan, in which Chevron has a 39.66% were proceeding on schedule. Chevron is set to
owned and operated interest, is one of the world’s begin drilling its first exploration well in its East
largest deepwater gas discoveries. The field is Mediterranean concession area offshore Egypt
located 130 km offshore from Haifa, Israel. in September, he said.™

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