Total Expects Output at Ugandan Oil Project in Three and Half Years
June 14 2021 - 5:34AM
Dow Jones News
By Nicholas Bariyo
KAMPALA, Uganda--French oil company TotalEnergies SE hopes to
commence oil production at its Tilenga oil fields in Uganda in the
next three and half years after awarding the main construction
contract for the oil project, Total's Ugandan unit said Monday.
A consortium of a McDermott International Ltd. subsidiary and
state-controlled China Petroleum & Chemical Corp., known as
Sinopec, will undertake the $2 billion contract to develop the
190,000 barrels-a-day oil project, which includes construction of
five drilling packages within the oil-rich Lake Albertine rift
basin along Uganda's western border with the Democratic Republic of
Congo.
It is another step forward for the long-delayed development of
Uganda's oil fields, weeks after Total signed a $3.5 billion deal
for the project's export pipeline.
"The Tilenga project development phase has a target to achieve
first oil in 43 months," Pierre Jessua, general manager of Total's
unit in Uganda, said. "The launch of these contracts underscores
our commitment to developing the Tilenga project while maximizing
value and viability of the project," he said.
Some $10 billion is required to develop the oil fields and a
900-mile pipeline, Total said.
Total holds a majority stake in the project, which is being
jointly developed with CNOOC Ltd. Exploration companies have
discovered as much as 6.5 billion barrels of crude in Uganda and
oil production could peak at around 230,000 barrels-a-day when
commercialization starts.
Write to Nicholas Bariyo at nicholas.bariyo@wsj.com
(END) Dow Jones Newswires
June 14, 2021 05:34 ET (09:34 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
TotalEnergies (EU:TTE)
Historical Stock Chart
From Mar 2024 to Apr 2024
TotalEnergies (EU:TTE)
Historical Stock Chart
From Apr 2023 to Apr 2024
