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Lake Albert development project launched in Uganda and Tanzania
TotalEnergies, China National Offshore Oil Corporation (CNOOC), the Uganda National Oil Company (UNOC) and the Tanzania Petroleum Development Corporation (TPDC) have announced a $10bn final investment decision (FID) for the Lake Albert development project in Uganda and Tanzania.
The development 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.
Tilenga and Kingfisher are expected to come onstream in 2025 and to reach a cumulative plateau production of 230,000 b/d. The upstream partners are TotalEnergies (56.67% and operator of Tilenga), CNOOC (28.33% and operator of Kingfisher) and UNOC (15%). Production from the Ugandan oil fields will be transported to the port of Tanga in Tanzania through the EACOP cross-border pipeline, whose shareholders are TotalEnergies (62%), UNOC (15%), TPDC (15%) and CNOOC (8%).
TotalEnergies reports that the oil development is in line with its strategy of only approving new projects if they are low cost and low emissions. The design of the facilities incorporates several measures to limit greenhouse gas emissions well below 20 kg CO2eq/boe, including the extraction of LPG for use in regional markets as a substitute for burning biomass, and the solarisation of the EACOP pipeline.
The French energy major and the Ugandan Ministry of Energy and Minerals have also signed a memorandum of understanding (MoU) for the development of renewable energy with the objectives of developing 1 GW of installed capacity, promoting access to electricity and clean energy, and supporting national climate change objectives through the deployment of carbon footprint reduction projects.
Elsewhere in Africa, TotalEnergies and the Rwanda Development Board have signed a MoU to collaborate on a range of projects. The projects include energy products distribution (including LPG, and electric charging), the supply of LPG as a substitute for burning biomass, renewable hydro-electricity generation, the development of power storage solutions for Rwanda’s electricity network, the development of a nature-based solution for carbon storage, and implementation of education and training programmes on new energies and the energy transition.
Looking downstream, TotalEnergies is looking to expand in Mozambique with the acquisition of BP’s fuel retail network, wholesale fuel business and logistics assets. The deal covers a network of 26 service stations, a portfolio of business customers and 50% in SAMCOL, the logistics company previously jointly owned by TotalEnergies and BP, which operates the Matola, Beira and Nacala fuel import terminals.
The assets are complementary to TotalEnergies’ existing network of 57 service stations and current B2B business. The acquisition strengthens the company’s position as the leading retailer of petroleum products in Mozambique.
Elsewhere, in the UK, TotalEnergies has signed an agreement to sell to Kistos Energy a 20% interest in the Greater Laggan Area fields and in the Shetland gas plant in the UK, as well as interests in several nearby exploration licences. The transaction price includes a firm consideration of $125mn as well as two contingent payments, the first one up to $40mn depending on the gas price in 2022, and the second one in the event of development of a discovery on an exploration licence.
Following completion of the sale, TotalEnergies E&P UK will hold a 40% operated interest in the Laggan, Tormore, Glenlivet, Edradour and Glendronach fields, including infield facilities and the onshore Shetland gas plant, alongside partners Kistos Energy (20%), Ineos and RockRose (20%).
East Africa Crude Oil Pipeline