Page 8 - AfrOil Week 04 2023
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AfrOil                                         INVESTMENT                                              AfrOil



                         Currently, the AGRC is assessing the planned   transporting 216,000 bpd of crude from Hoima
                         refinery on its environmental and social impact   in western Uganda to the port of Tanga on Tan-
                         post construction.                   zania’s Indian Ocean coast.
                           In the first quarter of 2021, the Ugandan gov-  This recent bout of refinery and pipeline
                         ernment signed a package of agreements with   projects take advantage of discoveries of oil
                         TotalEnergies, China National Offshore Oil   reserves in-country. The Petroleum Authority
                         Corp. (CNOOC) and the government of Tanza-  of Uganda (PAU) mentions: “The National Oil
                         nia on the construction of the East Africa Crude   and Gas Policy for Uganda 2008 recommends
                         Oil Pipeline (EACOP). Those documents out-  refining the discovered oil in-country to supply
                         lined plans for the construction of a 1,443-km   the national and regional petroleum product
                         heated pipeline, the longest of its kind, capable of   demand before consideration of exportation.” ™


       Uganda to launch third




       licensing round in May






            UGANDA       UGANDA’S government will launch a third   Project (LADP), a $10bn effort to commercial-
                         licensing round in May in the hope of attracting   ise Uganda’s heretofore untapped oil reserves.
                         new investors in oil exploration.    LADP also encompasses plans for the con-
                           Kampala unveiled plans for the licensing   struction of the East Africa Crude Oil Pipeline
                         round on January 20, with Energy Minister Ruth   (EACOP), a $4bn conduit that will pump crude
                         Nankabirwa Ssentamu saying that the govern-  along a 1,443-km route from Hoima in Western
                         ment would open the bidding process during   Uganda to an export terminal in the Tanzanian
                         an industry conference in May. Her statement   port of Tanga.
                         appeared to be a reference to the 10th East Afri-  EACOP will have to be heated to compensate
                         can Petroleum Conference and Exhibition 2023,   for the waxy nature of Ugandan crude, and it will
                         which is scheduled to take place on May 9-11.  be the longest pipeline of this type in the world.
                           Nankabirwa did not identify any of the   Meanwhile, LADP also envisions the construc-
                         blocks that would be included in the third   tion of a 60,000-bpd oil refinery by the US-led
                         licensing round nor say how many sites might   Albertine Graben Energy Consortium Partners
                         be opened up for bidding.            (AGEC) at a cost of $4.5bn.
                           She did indicate, though, that the Ugandan   Nankabirwa said on January 20 that she
                         government hoped the auctions would help   expected AGEC to make a final investment
                         support the development of the country’s nas-  decision (FID) on that part of the project, which
                         cent oil sector, which is set to enter the next   aims to boost petroleum product supplies to
                         stage when France’s TotalEnergies and China   Uganda and the regional market, before the end
                         National Offshore Oil Corp. (CNOOC) bring   of 2023.
                         the Tilenga and Kingfisher fields near Lake   Additionally, she stated that while EACOP
                         Albert on stream in 2025. These fields will even-  and the refinery would be built in parallel, Kam-
                         tually produce more than 200,000 barrels per   pala saw the domestic fuel market as a prior-
                         day (bpd) of crude.                  ity. “[When] both projects are operational, the
                           Kingfisher and Tilenga are the upstream   refinery will have the first call on crude oil,” she
                         components of the Lake Albert Development   remarked. ™




















                                        Nankabirwa announced Kampala’s plans on January 20 (Photo: Twitter/@NankabirwaRS.)



       P8                                      www. NEWSBASE .com                     Week 04   26•January•2023
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