Page 7 - AfrOil Week 28 2021

AfrOil PIPELINES & TRANSPORT` AfrOil

According to press reports, TPDC and the
Energy Ministry were also signatories to the
document, as were the owners of the land in
question.
Kalemani said at the signing ceremony
that the agreement provided for TZS2.5bn
($1.078mn) to be paid to 391 citizens of Tan-
zania. This includes 44 residents of the village
of Sojo in Tabora region, he said, noting that
members of this group would receive a collec-
tive sum of TZS424.8mn ($183,182), or almost
17% of the total.
The minister went on to say that the doc-
ument clearly identified the persons entitled
to compensation. As a result, he said, EACOP
should be able to make the necessary payments EACOP will run for 1,445 km from Hoima to Tanga (Image: African Energy Chamber)
quickly, without any debate over the details of
the deal. to livelihood restoration programmes and tran-
“I want the process to be finalised as soon sitional support packages, he said.
as possible so that disbursement can start even The EACOP link will follow a 1,445-km
today,” he declared. “We have no time to waste. path from Hoima, a town in western Uganda, to
We want the project to start immediately and be Tanga, a port on Tanzania’s coast. It will handle
completed in time.” 216,000 barrels per day (bpd) of oil from Blocks
Tiffen, for his part, said that EACOP was 1, 1A, 2 and 3A in western Uganda, which are
committed to compensating all of the owners of home to the Kingfisher and Tilenga fields. These
the land being requisitioned for construction of fields are due to begin production in 2025 and
the pipeline in line with the laws of Tanzania and will eventually yield at least 260,000 bpd of
the performance standards set by International crude.
Finance Corp. (IFC), a member of the World The pipeline will be built by a consortium in
Bank Group. The consortium will not seek to which France’s TotalEnergies will serve as the
access the land designated for pipeline construc- operator and have a 37.5% stake. The remaining
tion until it makes the compensation payments equity will be divided between China National
and issues a notice to vacate, he said. Offshore Oil Corp. (CNOOC), with 37.5%;
He also noted that the agreement signed by Uganda National Oil Co. (UNOC), with 15%,
the consortium, the Energy Ministry and TPDC and TPDC, with 5%. Both TotalEnergies and
spelled out the exact type of compensation that CNOOC are involved in developing the oilfields
each landowner would receive. Some will receive that will provide throughput for the pipeline; the
both monetary compensation and a package of former company serves as operator of Tilenga,
benefits, including replacement housing, access while the latter is leading work at Kingfisher. ™

INVESTMENT
Woodside completes acquisition

of FAR’s stake in Sangomar block

SENEGAL AUSTRALIA’S Woodside Energy reported last a working capital adjustment worth $167mn
week that it had wrapped up the acquisition of and the adjustments and remedies made to
a minority stake in RSSD, the joint venture set FAR’s defaulted payments under the joint oper-
up to explore and develop the Sangomar block ating agreement (JOA) covering the block, it
offshore Senegal, from FAR Ltd, another Aus- explained.
tralian company. The company will also pay up to $55mn
Woodside announced the completion of the more to FAR once the block comes on stream,
transaction in a press release, saying that it had depending on future commodity prices and the
made a final payment of approximately $126mn date on which the project achieves first oil.
for the asset, which consists of a 13.67% stake The transaction brings Woodside’s total
in the Sangomar Offshore field and a 15% stake holdings in RSSD to about 82% in Sangomar
in the other two sections of RSSD’s licence area. Offshore and 90% in the other two sections of
This sum included the purchase price of $45mn, the Sangomar block.

Week 28 14•July•2021 www. NEWSBASE .com P7