UGANDA – TotalEnergies and project partner China National Offshore Oil Corporation (CNOOC) have announced the Final Investment Decision (FID) for the Lake Albert Development project in Uganda, ushering in a new era of enhanced energy security in East Africa.
At a total investment of approximately US$10 billion, the FID follows a deal signed with the Ugandan and Tanzanian governments.
Following the discovery of crude oil reserves in the Lake Albert Rift Basin in 2006 and 2009 by Tullow Oil, as well as the considerable efforts made by Heritage Oil Plc. to open up the Albert and Kingfisher assets, Uganda has been focused on developing domestic production capacity in the country.
Now, with the Lake Albert Development, the project developments will be instrumental in positioning both Uganda and Tanzania as competitive hydrocarbon markets.
Comprising the Tilenga and Kingfisher upstream projects – which are set to start producing 190,000 and 40,000 barrels per day (bpd) in 2025, respectively – as well as the construction of the East African Crude Oil Pipeline (EACOP), the development will enable Uganda to fully monetize its 1.4 billion barrels of recoverable oil resources while providing export opportunities through Tanzania.
Representing a 1,443km, 216,000 bpd export pipeline, the EACOP will connect landlocked Uganda with international markets, bringing in critical foreign expenditure for the country.
“The development of Lake Albert resources is a major project for Uganda and Tanzania, and our ambition is to make it an exemplary project in terms of shared prosperity and sustainable development,” stated Patrick Pouyanné, chairman and CEO of TotalEnergies.
“We are fully aware of the important social and environmental challenges it represents. We will pay particular attention to use local skills, to develop them through training programs, to boost the local industrial sector in order to maximize the positive local return of this project.”
With Uganda representing one of Africa’s most lucrative emerging markets, the FID marks a milestone in the country’s ambition to become a crude oil producer and exporter.
Backed by a committed national oil company, the Ugandan National Oil Company (UNOC), the country is poised to undergo significant energy and economic growth.
The deal with Uganda, comes just two days after the French giant signed a renewable energy MoU with Rwanda, indicating the company’s push to deploy its multi-energy strategy in Africa, where it has been previously criticised for neglecting clean energy projects, TotalEnergies CEO Patrick Pouyanne said.