Uganda crude export pipeline advances to FEED stage

January 9, 2017 in Business, Companies, Energy, Hydrocarbons by Editor

Kampala January 9 – Uganda’s Ministry of Energy with its Tanzanian counterpart and Total have commenced the Front-End Engineering Design (FEED) study for the Uganda-Tanga crude oil export pipeline dubbed the East African Crude Oil Pipeline.

Uganda has 6 billion barrels of crude oil with 2.5 billion considered recoverable.

Although coming two months behind schedule, the FEED will develop the East African Crude Oil Pipeline project basic engineering that will form the basis for the detailed engineering, final investment decision and lead
to the project execution and construction phase of the pipeline in a eight months.
“Once the study is complete, we shall be clearer with details concerning the actual overall cost of the project. Currently the estimated cost of the pipeline is $ 3.55billion but once the study is complete, we shall be able
confirm the actual cost of the project because the FEED will narrow down some costs. We shall also be able to verify the routes the pipeline will take in addition to ascertaining when actual works on the pipeline will be
running,” Ms Irene Muloni, Uganda’s energy minister said.

Speaking during the in Kampala today, Tanzania’s energy minister Mr. Sospeter Muhungo said the study was fundamental because it would give the partners a detailed structural view which will eventually lead them to
make a decision in regards to the overall cost of the pipeline.

Adewale Fayemi, the General Manger at Total E&P which will take the lead on the 24 inch pipeline said the launch is a major milestone for the oil and gas resource in Uganda. Initial estimates put the distance of the pipeline at 1536 kilometres. Muloni added that the shareholding in the project has not been determined but would be concluded once the study is complete.