Part 1-The Tilenga project updates
Site preparation in the industrial area for mega oil and gas infrastructure construction is halfway complete, a move that has seen TotalEnergies hand over part of the site to McDermott International, an integrated Engineering, Procurement and Installation service provider to take over.
McDermott and Sinopec International Petroleum Services Co. are the main contractors for the Engineering, Procurement, Supply Construction and Commissioning (EPSCC) of the Tilenga project. The contract comprises of the development of an Industrial Area, Pipeline Network, Lake Water Abstraction and Well pads. The Industrial Area will include among other facilities, a Central Processing Facility (CPF).
CPF is a facility used to churn out gases, wastes, water and crude oil before shipping through a pipeline leading to export markets or to a refinery. It is from the same facility that power will be generated. McDermott took over from Mota-Engil Uganda which is the contractor for early works (site preparation).
“We have reached 50% completion and we have handed over the area to McDermott to start its activities as main contractor for the industrial area development,” said Phillipe Grouiex, TotalEnergies General Manager at the 8th Annual Oil and Gas Convention in Kampala.
“Also, more area has been handed over to Vallourec, the main contractor for tubulars to start the tubulars works. We have started to see the tubulars coming in,” Mr. Phillipe added.
Tubulars are steel pipes used to drill the wells, case the wellbore, and produce the reservoir fluids.
McDermott and Sinopec EPSCC contract is approximately $2billion, the single largest contract package so far awarded in the Tier 1 arrangement. There are other Tier 1 contracts awarded under Tilenga for drilling rigs, drilling and completions, tubular works, electrical works , waste management, camp services among others.
Some of sub-contractors include: GCC Uganda, contracted for the catering, camp maintenance, and camp management of the main construction camp with an expected maximum capacity of 4,000 personnel. Also subcontracted is NEWPLAN Limited which is working on local regulations and site permanent support, Karmod, BETA JVP sub-contracted for works on EPC for camps, Mantrac Uganda for provision of power, KK Security Uganda Limited has the contract to provide security while joint venture between United Health Care Global Medical (UK) Limited and Case Hospital Limited have been contracted to provide medical services.
The main contractors plan to award additional sub-contracts in future. Such is the volume of work that companies are beginning to realize following the signing of the Final Investment Decision for the Uganda oil and gas project.
Tilenga project has 12 Tier 1 contractors so far, with each having several sub-contractors. This means that the oil and gas project is out to create employment to the people. As an example, McDermott upstream infrastructure development alone shall employ close to 3,000. The catering service provider GCC Uganda Ltd and Health service providers have been alerted to prepare to give services to a large number of people 24/7.
It is a government regulation that contracts do not go beyond five years, “to give a chance to new players who might want to come on board,” explained Mr. Edris Kwezera, In Country Representative for the Tilenga project.
Kwezera explained that the project is already at execution phase and many facilities are being established, but once oil production begins, more services shall be required from different contractors for example lubricants, maintenance and inspection engineering. In all, up to 50- 80 contracts shall be on offer.
There are many activities ongoing at Tilenga upstream oil and gas project signifying end to speculation whether the oil will come out or not.
“We have a number of roads to be built to be able to access 31 well pads, that support all the 431 wells to be drilled. These roads are very important to be able to access the well pads. Without the roads we cannot start construction of the well pads,” said Phillipe.
Also, to be accomplished at the Tilenga project is the upgrade of the Bugungu airstrip and the contractor has already been selected. Work is expected to be completed in the next 12 to 13 months. In Mid-2023, the airstrip should be operational.
In the meantime, well pad civil works are also ongoing. Mota-Engil Uganda Ltd was selected in October, 2021 to work in this area starting the Month of April, 2022.
ENDS.