TILENGA OIL PROJECT: Total E&P Awards $1.9b Contract to a Consortium of Chinese, British Firms

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Total E&P Uganda has picked a consortium of British and Chinese firms for the construction of the $1.9 billion oil production Tilenga project located in Nwoya and Buliisa District.

In a statement, Total E&P, the lead investor in Uganda’s oil project said it has signed Conditional Letters of Award for the main surface facilities Engineering, Procurement, Supply, Construction and Commissioning (EPSCC) as well as five drilling packages for the Tilenga project.

The successful companies from the bidding process include; CB&I UK Limited, a subsidiary of McDermott Company and Sinopec International Petroleum Service Corporation (SINOPEC), a Chinese firm for the Engineering, Procurement, Supply, Construction and Commissioning (EPSCC) of the Central Processing Facility, flowlines, and other associated surface facilities.

Others are; Schlumberger Oilfield Eastern Limited for three well engineering packages, Vallourec Oil and Gas France for one well procurement package and ZPEB Uganda Co. Limited for one rigs package.

These conditional awards are a first step which allows for the launching of the detailed engineering (where applicable such as for the EPSCC) and procurement activities before the final approval by the Partners.

“Following a comprehensive, competitive and thorough tender evaluation and contracting process that began with the phased submission of Front-End Engineering and Design proposals to ensure project optimization, we are pleased to sign these conditional letters of award for the Tilenga project to these five highly qualified industry players.

“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,” said Mr Pierre Jessua, General Manager, Total E&P Uganda.

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The companies above have also made significant commitments to promoting National content through employing Ugandans, use of Ugandan goods/services and technology transfer.

“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,” Mr Pierre Jessua added.

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