TotalEnergies and China National Offshore Oil Corporation have said they have reached final investment decision (FID) for the Lake Albert Development project in Uganda, ushering in a new era of enhanced energy security in East Africa. With a total investment of approximately $10 billion, the IDF follows an agreement signed with the governments of Uganda and Tanzania. Following the discovery of crude oil reserves in the Lake Albert Rift basin in 2006 and 2009 by Tullow Oil, as well as considerable efforts by Heritage Oil Plc. to open the Albert and Kingfisher assets, Uganda has focused on developing domestic production capacity in the country. In 2020, Tullow sold its assets to TotalEnergies, with the France-based largest now working in partnership with CNOOC to grow the entire energy value chain.
Now, with Lake Albert Development, project developments will be instrumental in positioning both Uganda and Tanzania as competitive hydrocarbon markets. Comprising the Tilenga and Kingfisher upstream projects, which will start producing 190,000 and 40,000 barrels per day (bpd) in 2025, respectively, as well as the construction of the East African Crude Oil Pipeline (EACOP), the development will allow Uganda to fully monetise its 1.4 billion barrels of recoverable oil resources while providing export opportunities through Tanzania. The EACOP, which represents a 1,443 km, 216,000 bpd export pipeline, will connect landlocked Uganda to international markets, generating critical foreign spending for the country.
“The development of Lake Albert resources is an important project for Uganda and Tanzania, and our ambition is to make it an exemplary project in terms of shared prosperity and sustainable development. We are fully aware of the significant social and environmental challenges that it will provide. special attention to the use of local skills, to develop them through training programs, to boost the local industrial sector in order to maximize the positive local return of this project”, said Patrick Pouyanné, president and CEO of TotalEnergies in a statement. press release issued by the company. With Uganda representing one of Africa’s most lucrative emerging markets, the FID marks a milestone in the country’s ambition to become a producer and exporter of crude oil. Backed by a committed national oil company, the Uganda National Oil Company (UNOC), the country is poised to experience significant energy and economic growth.
During African Energy Week (AEW) 2021, Uganda made a big bet on investment, with a strong delegation of industry leaders driving discussions on the role the country’s oil reserves will play in the energy future. from Africa. Despite representing a relatively new hydrocarbon sector, Uganda is keen to join the heavyweights, and the Lake Albert FID project proves it. Under the leadership of HE President Yoweri Museveni, Uganda has placed exploration and production at the forefront of its national development agenda, recognising the role oil plays in addressing energy poverty and security. Building on the discussions held at AEW 2021, Uganda will be in the spotlight at AEW 2022, taking place in Cape Town from October 18-21, 2022, with private and public sector executives leading the East African dialogue. Expanding on the oil and gas narratives focused on during AEW 2021, the 2022 edition of the event will deepen the discussion around hydrocarbon exploration and production and the value of cross-border partnerships. The EACOP is a remarkable example of how African countries can and should collaborate, serving as a model for other regions seeking to develop infrastructure projects within Africa. As Africa pursues accelerated growth in the energy sector, AEW 2022 has placed an emphasis on integration and cooperation.
