Lake Albert Development Project: The progress of the Kingfisher Development Area (KFDA) that covers the Kingfisher field located in Kikuube District with plans for future tie-in of Mputa-Nzizi-Waraga fields in Kaiso-Tonya, Hoima District in Uganda, has been revealed.
The implementation phase of the project was launched on March 11 following the announcement of the final investment decisions taken by CNOOC Uganda Ltd, a subsidiary of China National Offshore Oil Corporation(CNOOC), a major Chinese state-owned oil company under the direct control of the State Council of the People’s Republic of China, and TotalEnergies SE, a French multinational integrated energy and petroleum company, on February 1.
The construction of the Drilling Camp, four well pads (1, 2, 3 and 4A), Temporary and Permanent Camp Infield Pipelines, Support Base, Feeder Pipeline, and the Central Processing Facility (CPF), will be the main works at Kingfisher Development Area.
Senior Civil Engineer at CNOOC Uganda Ltd., Engineer Haroon Nooh, explained that the project’s constructions were grouped into four packages which are, Engineering, the Procurement and Constructions (PC1), Procurement and Construction 2 (EPC2), EPC 3, EPC4 and among others.
Overview and development of the Kingfisher Development Area (KFDA) packages
The civil works for the development of 3 well pads (1, 2 and 3), the construction of infield routes and the installation of conductor pipes according to Nooh are currently in progress under the PC1. Wellpad 2 is expected to be delivered at the end of August, well pad 3 in February 2023, and wellpad one will be delivered in July 2023. The overall work and the package are up 18.55% since they began installation of conductor pipes pad 2, which will be done within 12 weeks.
Contractors led by Excel Construction (U) Ltd will construct a 120-man permanent camp, a support base for storing materials for the CPF, and a safe work station near the escarpments as part of the EPC 2 package. A CPF will be constructed under EPC3, which is a site where all of the extracted materials will be purified to separate them from water, gas, sand, and other solid materials. This process will enable the materials to be transported through the feeder pipeline to Kabaale Industrial Area, where a refinery will be constructed, and others to Tanga through the EACOP.
The contractor will also provide infield flows to connect inland wells, a temporary camp, and a water intake station as part of this package. According to Nooh, similar to EPC 2, work on this package is still in progress, with the detailed engineering design set to be completed in 36 months. He reckoned that other significant works are under EPC4, and also they will be constructing the KF feeder line and the High Voltage power line, which is expected to take 25 months to complete.
Other activities include the construction of floodwalls and jetty, which will protect Wellpad 1, 2, and 3, according to him, and will be completed in 6 months after the design is completed and a call for tenders is issued; the construction of roads in the drilling camp, which is currently underway; the construction of temperature water abstraction, football pitch, and volleyball/basketball courts; as well as the design and construction of the Buhuka water project and maintenance.
The head of corporate affairs at CNOOC, Zack Lubega, said that they were optimistic that all development work would be completed by the end of 2024. The first oil will be produced in early 2025.
Lake Albert Development Project Commissioned Following Final Investment Decision
The Lake Albert Development Project has been launched in a ceremony held in Kampala, in the presence of President Yoweri Museveni of the Republic of Uganda, Vice-President Philip Mpango of the United Republic of Tanzania, and Patrick Pouyanné, Chairman and CEO of TotalEnergies SE.
Also present were representatives of the China National Offshore Oil Corporation (CNOOC), the largest offshore oil and gas producer in China, the Uganda National Oil Company (UNOC), and the Tanzania Petroleum Development Corporation (TPDC).
Lake Albert Development Project Overview
The Lake Albert Development Project encompasses the Tilenga and Kingfisher upstream oil projects in Uganda, and the construction of the East African Crude Oil Pipeline (EACOP) in Uganda and Tanzania.
The Tilenga project which is operated by TotalEnergies and the Kingfisher project which is operated by CNOOC is expected to start production in the year 2025 and reach a cumulative plateau production of 230,000 barrels per day. The upstream partners are TotalEnergies with a 56.67% stake, CNOOC with 28.33%, and UNOC with 15%.
Production from the oil fields in Uganda will be transported to the port of Tanga in Tanzania via the EACOP cross-border pipeline, whose shareholders are TotalEnergies with 62%stake, UNOC with 15%, TPDC with 15%, and CNOOC with 8%.
The final investment decision
The project was launched just after TotalEnergies and its partner CNOOC had reached a deal with Uganda and Tanzania to invest more than US$ 10bn in the project.
The deal, which is generally the long-awaited Final Investment Decision (FID), was signed by Uganda’s Energy Minister Ruth Nankabirwa on behalf of the government of Uganda, and General Manager/Country Chairman Philippe Groueix on behalf of the French firm.