Total E&P Uganda has signed conditional letters of award for surface facilities and drilling packages under its Tilenga project, in western Uganda.
“Following a comprehensive, competitive and thorough tender evaluation and contracting process that began with the phased submission of front-end engineering and design (FEED) proposals to ensure project optimisation, we are pleased to sign these conditional letters of award for the Tilenga project to these five highly qualified industry players,” said the company’s general manager Pierre Jessua.
“The launch of these contracts underscores our commitment to developing the Tilenga project while maximising value and viability of the project, and observing the most stringent Health, Safety, Social, Environment and Quality standards to which the contractor must adhere.”
The first package went to CB&I UK and Sinopec. This covers engineering, procurement, supply, construction and commissioning (EPSCC) of the central processing facility (CPF), flowlines and other surface facilities. The CPF will be built at Buliisa, outside the Murchison Falls National Park.
Schlumberger Oilfield Eastern received three well engineering packages. These cover upper completions, artificial lift, and associated services; directional drilling, well logging, measurements-while-drilling, buttonhole assembly, data transmission & real time operation centre services; and wellheads, Christmas trees and associated services.
The third award went to Vallourec Oil and Gas France. TotalEnergies awarded this company one well procurement package on casing, tubing and associated services.
The last award went to ZPEB Uganda. The company won one rig contract, covering onshore drilling rigs, tubular running and fishing services.
TotalEnergies did not reveal contract costs. McDermott has reported its contract win with Sinopec to be worth around $2 billion.
TotalEnergies said the conditional awards were a first step. This allows companies to begin detailed engineering and procurement work. Partners in the Lake Albert development must approve the contracts for work proper to begin.
The company went on to note that contractors had made commitments to national content. Talks have begun with various stakeholders, including district and local leaders.
“Thanks to this first step, the Tilenga project development phase has a target to achieve first oil in 43 months,” Jessua said. The companies will also ensure “sustainable value retention in the economy through promotion of national content”.
The Tilenga development spans six fields. It will produce 190,000 barrels per day. TotalEnergies has said it will drill 426 wells, from 31 well pads.