Uganda gets closer to oil production
KAMPALA, UGANDA- The three joint venture partners of Total, CNOOC and Tullow oil have launched the Front End Engineering Design (FEED) studies for Uganda’s Oil Exploration Area 1 and Exploration Area 2 putting a land mark sign that the country may produce oil soon. The joint partners have selected three international companies of Fluor from USA partnering with China Petroleum Engineering and Construction Corporation of China, Technip of France and Chicago Bridge and Iron Company based in the United States of America through a competitive bidding process to conduct the FEED. Uganda’s Energy Minister Irene Muloni assured the country that its nearing oil production with the first drop expected in 2020. “”We’re expecting the FEED report by 31 December this year. Then, there we shall have the Final Investment Decision from the joint venture partners,” said Muloni. During FEED, all necessary technical definition, cost and schedule estimates will be developed to allow the Joint Venture partners to make a recommendation for a Final Investment Decision. Muloni said the selected companies boast of invaluable experience in the design and construction of remote onshore projects elsewhere in the world, and will bring different engineering design philosophies and expertise for the benefit of the project. “The three selected FEED contractors have the potential to progress to the next phase of the project, which is Engineering, Procurement and Construction. “As the contractual strategy chosen is a competitive FEED, after 6months of initial design the two best performing companies on the FEED contract shall be invited to compete for EPC,” said Muloni. She said the results from the FEED studies shall provide the nec- essary information to fine tune the cost estimate of the project, identify the specific technical expertise, skills and equipment needed for construction. “As the FEED requires a large number of engineers from many different disciplines with first hand experiences of similar projects elsewhere in the world, the first phase of the FEED study will be carried primarily in the respective offices of Flour, Technip and CB&I. “However, national content being a priority both for Government of Uganda and the upstream partners, a key deliverable from each contractor will be to propose a National Content strategy for the second phase. “This will be one of the performance criteria for selection of the contractor for phase 2 of the FEED and eventual selection of the EPC contractor,” said Muloni. Muloni said a call for tender is being prepared for enabling infrastructure design work, expected to be awarded in May 2017. “Enabling infrastructure are the works required ahead of any major engineering and construction work, including local access, bush clearing, site preparation, fencing and other tasks of a similar nature, for which Ugandan companies are expected to be involved,” said Muloni. She said concurrent with the FEED studies, other activities whose contracts have also already been awarded and are in progress with in the upstream project include Environment and Social Impact Assessment and Land Acquisition and Resettlement Planning. “Work is also progressing on the contract strategy for Drilling and Wells services,” she said. Muloni said contracting plans and implementation activities for the Kingfisher Upstream Development and the East African Crude Oil Pipeline are progressing.
Uganda’s Energy Minister Irene Muloni assured the country that its nearing oil production with the first drop expected in 2020.