TotalEnergies Awards Contract Worth $600 million in Uganda
TotalEnergies, through local subsidiary Total E&P Uganda, has awarded five drilling packages reportedly worth almost $600 million for its Tilenga project located in Nwoya and Buliisa Districts, as part of its commitment to promoting National content through employing Ugandans, use of Ugandan goods, services and technology transfer.
The news was announced by Total E&P Uganda on Monday 14th June 2021 and contract values were published on Tuesday by Upstream Online.
Oilfield technologies giant Schlumberger won three well engineering packages, which Upstream reported to be worth almost USD 350 million. The packages cover wellheads and Christmas trees, upper completions, artificial lift, directional drilling, well logging, MWD and other services.
Sinopec subsidiary ZPEB Uganda Co. has won a contract reportedly valued at USD 210 million for the provision of onshore drilling rigs and tubular running and fishing services.
A third player, France’s Vallourec Oil & Gas, was awarded a contract for casing, tubing and other services valued at around USD 120 million, according to Upstream.
Mr Pierre Jessua, General Manager, Total E&P Uganda said: “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 optimization, we are pleased to sign these conditional letters of award for the Tilenga project to these 5 highly qualified industry players. The launch of these contracts underscores our commitment to developing the Tilenga project while maximising the value and viability of the project and observing the most stringent Health, Safety, Social, Environment and Quality standards to which the contractor must adhere.
“Thanks to this first step, the Tilenga project development phase has a target to achieve first oil in 43 months. All the companies will deploy their years of expertise and best-in-class technology to delivering the project while also ensuring sustainable value retention in the economy through promotion of national content.”
Stakeholder engagements have commenced with all stakeholders including the District and local leaders as well as surrounding communities.
Total E&P Uganda is committed to undertaking its activities in an exemplary and transparent manner in terms of environment, health, safety and societal engagements. The Company adheres to the highest national and international standards including the World Bank – International Finance Corporation standards as well as the UN Guiding Principles on Business and Human Rights.
TotalEnergies has been present in Uganda since 1955 through its marketing operations and has 200 stations countrywide. Total E&P Uganda is an upstream affiliate that is leading the development activities towards production in the Tilenga project area – Exploration Area 1 (EA-1) and Exploration Area 2 North (EA-2N) within the Albertine Region.