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.)
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