Uganda set to launch tender cycle to accelerate oil sector development

Uganda is making progress in exploiting its oil resources in relation to production, transport and processing. To do so, it needs to attract the best companies in the sector globally.

The Petroleum Authority of Uganda (PAOU) has indicated that tenders will be launched in December 2021 to proceed with the first phase of the development of various national energy infrastructures. The information was revealed by PAOU’s Director of Technical Support Services, Peninah Aheebwa, during a youth training program.

The development of these oil facilities will take into account the construction of a refinery, the EACOP pipeline linking Uganda to Tanzania and the completion of the oil road network in the Albertine Graben region.

“The companies that will win the key tenders will begin construction of the Kingfisher and Tilenga wells [wells from which 216,000 barrels of oil per day will be extracted from Uganda to the Tanzanian port of Tanga for the EACOP project, Ndlr], and other wells will also be developed during the second phase,” added Aheebwa.

In addition, the country, which relies on Local Content, said that this first stage of oil and gas infrastructure development is expected to bring in about $15 billion to local and international companies. Ugandan law stipulates that when the goods and services required by a contractor are not available in the territory, they must be provided by a company that has entered into a joint venture with another Ugandan. This is provided that the local company has at least 48% equity in the joint venture.

Uganda has a population of 44.27 million and will be part of the oil-producing countries from 2023, thanks in part to the development of the Lake Albert oil project, which includes the Tilenga and Kingfisher oil fields, as well as the construction of the EACOP pipeline. It should be noted that in this region, which is a natural barrier of 160 km separating Uganda from the DRC, the equivalent of 6.5 billion barrels of crude oil rests, of which about 1.4 billion are recoverable in the current state of technology.


Source: Agence Ecofin

The post Uganda set to launch tender cycle to accelerate oil sector development appeared first on Energy News | Oil and Gas News.

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