UGANDA: Local and Foreign Contractors Eye Tilenga Project Deals

Dozens of companies from Uganda and internationally attended the Total E&P Uganda Supplier Development dialogue virtual workshop held today under the theme “Enhancing Awareness and Participation in Upcoming Opportunities in the Tilenga project“. The workshop targeting suppliers interested in the Tilenga project and East Africa crude oil pipeline informed participants on the various phases and current status of the projects with special emphasis on local participation and joint ventures with international companies.

Presenting at the forum engineering, procurement, construction and commissioning (EPCC) services contractor McDermott told participants that the company has put in place a robust National Content plan hinged on capacity building, community participation, training of Ugandans and local partnerships. This McDermott says will see all capable Local firms in Uganda afforded the opportunity to work on the project as suppliers and contractors.

McDermott says contractors will have a chance to participate in about 50 Subcontracts that will be awarded on the Tilenga project with the consortium working to ensure local companies are able to fulfill industry standards and safety requirements.

TotalEnergies says it is aiming at a low carbon print sustainable project in the Uganda project tasking all contractors and subcontractors to adhere to strict business practices that protect the environment and promote local content.

“To achieve the quality and cost objectives for Tilenga Project, contractors require high levels of experience, competence and compliance with the international oil and gas standards,” says Jean-Yves Poulet, GM TotalEnergies Uganda.

Companies have also been urged to register in the national supply database to allow them participate in procurement as per the country requirements. The Petroleum Authoriy of Uganda termed the database as the foremost important starting point in being part of oil projects in the country.

The PAU Asks for basic compliance documents on the National Supplier Database but the Licenses have a more comprehensive list of requirements that they will ask for from all applicants /Bidders. James Musherure Rujoki – National Content , PAU.

Local companies were also challenged to look into joint ventures as a way of improving competencies through partnerships, skills transfer and expanding the financial base.

“Shareholder agreement should spell out among other: the activities to be undertaken by the Joint venture, the appointment of key directors and the decision making processes. When You come together , you are able to match more attractive resources , manage risk and match capacity.” Dennis Kakembo – Cristal Advocates.

Schlumberger which has received a contract for three well-engineering packages in the Tilenga project for upper completions, artificial lift, and associated services says it will continue to establish partnerships with local educational institutions to build capacity of the local manpower and deliver on the commitment of recruiting in Uganda.

“Schlumberger has put in place a strong sustainability plan to ensure positive impact wherever the group works. This underpins the strategy that aims at Global stewardship, decarbonization and leading the industry into a an energy transition,” said Nicholas Tuma, Group HR manager for Angola, East & South Africa.

The Tilenga project involves the development of an onshore oil field that will generate up to 200,000 barrels per day (BPD) and consist of 31 well pads connected to a central processing facility (CPF) via buried flowlines. With the first contracts already issued mainly to large oilfield service providers, many smaller companies especially in Uganda are hoping to get a piece of the pie by clinching the smaller subcontracts in the areas of expertise.

Download the latest outlook for the Tilenga project development phase and the East Africa Crude Oil Pipeline 2021 – 2025 HERE