One of the joint venture partners in Uganda’s oil sector and the developer of Tilenga project, Total Energies, has revealed that the on-going escalating fuel prices have not yet affected their works in Tilenga Development Area.
Following the declaration of the Final Investment Decision by both Total and the China National Offshore Oil Company (CNOOC), the two companies intensified issuance of contracts that have since seen the commencement of the development of the fields.
Total is developing a $4.6Bn Tilenga project while CNOOC is developing the Kingfisher Project.
Speaking to Journalists during the post FID Tour in Tilenga on Wednesday this week, Engineer Edrisa Kwizera the In-country Tilenga Project Representative said that the escalating fuel prices haven’t affected them yet and that work is ongoing as scheduled.
“As of now, we have not quantified fully what the impact is but it’s obvious that some of our contractors who are using fuel will have seen the impact. As Total Energies we do have robust contracts in place that protects us from such adverse impacts and as I am speaking we are still making an overall assessment,” he said.
“We do not have an adverse impact as far as the fuel prices are concerned but it is not something that we are ignoring, we are monitoring very closely,” he added.
The Tilenga project has numerous sites but the main works shall be done at the Industrial Site located in Kasinyi village, Buliisa District.
The Site, according to Eng. Kwizera will host the central processing facility (CPF), the 4000-man construction camp, the drilling support base, the operator support base and the famous Gunya Well Pad.
“The CPF will work in separating oil from water and other solid particles. Majority of these works are temporary and will help us in constructing permanent Site which will work on oil production for 20 to 30 years,” he said
“Right now you are seeing the Site preparations and we are planning to finish this within the second quarter of this year. This work started in June last year but in terms of the Tilenga project it is a 43-month project,” he added
Eng. Kwizera said that majority of works in the area are being undertaken by Ugandan Companies such as Mora Engil which is preparing the Oil Site which also sub-contracted other companies.
The post FID media tour has been organized by CNOOC Uganda Limited in collaboration with Total and other partners including UNOC, PAU and the ministry of energy.
It has been organized to showcase the latest developments in the Oil and Gas Industry and is taking place in districts of; Hoima, Kikuube, Buliisa, and Kiryandongo between Wednesday and Friday.
The tour, according to Gloria Ssebikari the Corporate Manager at PAU will cover, among other things, the Kingfisher Development Area, Kabaale Industrial Park, the East African Crude Oil Pipeline Project, the Tilenga Development Area, and the Uganda Petroleum Institute at Kigumba.
Speaking at the Tilenga tour, Solomon Muyita, the Principal Communication Officer at the Ministry of Energy and Mineral Development bashed activists who are frustrating the EACOP project.
“We know that what activists are doing is a job because they write proposals and are funded; anybody who is working for money will do their best to take it forward but what they are fighting for environmental conservation is part of government’s priority and that’s why we have a full ministry on charge of Water and Environment, agencies like NEMA. We plan to invite them and sit with them so that they don’t frustrate the projects which will benefit all of us,” he said.
“This project will bring money that will help us uplift our health care system, construction of roads, schools so there is no need of fighting a project which can help us as a country because we have got a chance that we can now get enough money from such projects,” he added.