Total Expects First Oil From Ugandan Project in 2025
12 April 2021 - 3:00PM
Dow Jones News
By Nicholas Bariyo
KAMPALA, Uganda--French oil giant Total SE said it expects to
start commercial oil production from its Ugandan oil fields by
early 2025.
As much as $10 billion is required to develop the oil fields and
build a 900-mile export pipeline to tap around 1.4 billion barrels
of crude from Uganda's western border with the Democratic Republic
of Congo, according to the company's chief executive Patrick
Pouyanne's remarks delivered Sunday in Uganda's lakeside city of
Entebbe, where Ugandan and Tanzanian leaders signed several
agreements to clear the project.
Total's latest projection is less optimistic than an earlier
prediction of first commercial oil by 2024, as the landlocked
nation grapples with the delayed commercialization of its crude
fields, first discovered in 2006. Moody's Investor Service expected
the commercialization of the oil fields to significantly boost
Uganda's growth.
The project, which will involve the construction of a $3.5
billion pipeline to the Tanzanian port of Tanga on the Indian
Ocean, cements Total's position as the leading player in East
Africa, where years of exploration activities have led to the
discovery of large crude and natural-gas reserves.
Uganda's President Yoweri Museveni and Tanzania's President
Samia Hassan signed a joint agreement to allow the construction of
the 230,000 barrels-per-day pipeline project. Tanzania and Uganda
signed another deal capping oil pipeline transit fees at $12.7 per
barrel.
Total holds a majority stake in the Ugandan oil project, which
is being jointly developed with China's Cnooc Ltd.
South Africa's Standard Bank and Japan's Sumitomo Mitsui Banking
Corp. are helping to raise credit to fund the pipeline project.
Write to Nicholas Bariyo at nicholas.bariyo@wsj.com
(END) Dow Jones Newswires
April 12, 2021 00:45 ET (04:45 GMT)
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