Uganda seeks new Technology for Crude Oil Pipeline

By HSE East Africa | Monday Oct 2, 2017

Uganda is searching for cheaper technology to facilitate a smooth flow of its waxy crude in the proposed oil pipeline. If available, it will help the country escape the cost of heating the 1445 kilometer infrastructure, Energy Minister said.

The proposed 24 inch World’s longest electrically heated pipeline will route 200,000 barrels per day (bpd) from oil-rich Albertine Graben to Tanzania’s Northeastern port of Tanga when production starts in 2020.

Construction of the pipeline was commissioned by Uganda President Yoweri Museveni and his Tanzanian counterpart John Magufuli in August. France’s Total SA, China’s CNOOC Ltd. and London-based Tullow Oil Plc are jointly developing the country’s oil finds.

Minister Irene Muloni told a delegation of investors and stakeholders at the 3rd Uganda International Oil and Gas Summit that an alternative to heating “is an area of interest to us (government) because we are looking for a least cost way of transporting the crude”

“We are open to hear and take advantage of the available technologies in Oil and Gas,” she said, adding that her Ministry has been approached by a group of investors whose technology would help to cut the cost by 50%.

Uganda has reportedly earmarked the pipeline infrastructure for fast-track mode in order to realize the 2020 oil production target.

The Front End Engineering Design (FEED) taken by Gulf Interstate Engineering is nearing conclusion. Muloni says negotiations for host government agreements are still ongoing and the Final Investment Decision (FDI) is expected by the end of 2018.

Joining OPEC

Immediately production starts, Uganda will commence negotiations with the Organization of Petroleum and Exporting Countries (OPEC) the world’s biggest oil exporters club.

The Ugandan government took the decision to join OPEC after consultations with other existing member states, including Equatorial Guinea, Muloni told delegates.

“When we start producing our oil, we will join OPEC, to reap the benefits from being a member of the organization, these include stability of prices,” she said. “We remain on course to deliver first oil in 2020.”

Source: Uganda Oil Journal


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