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Kampala, Uganda | THE INDEPENDENT | Panyu Chu Kong (PCK) Steel Pipe says it is ready to deliver the first one hundred kilometers of “Smart Crude oil pipeline” for the East African Crude Oil Pipeline (EACOP) project.
The pipelines are part of those needed for the construction of the 1,445-kilometer pipeline that will transport Uganda’s oil from Hoima to the Port of Tanga in Tanzania.
According to the company, the first batch of the pipes are ready and in the process of being delivered to the port of Tanga, in Tanzania.
“We are committed to ensuring timely delivery and high-quality pipes,” Xie Leshan the PCK President said at a meeting with a delegation of the Petroleum Authority of Uganda (PAU) led by Ernest Rubondo, the Executive Director.
The team visited PCK’s Pipe Mill in Lianyungang as part of a verification and validation visit to the Kingfisher Development project and East Africa Crude Oil pipeline (EACOP) Project activities in China, ahead of accelerated timelines for Uganda’s Oil projects.
Confirmation by the company confirms the major role that China and Chinese firms are expected to play in the construction of the pipeline. Some Western banks and insurance firms were forced to shy away from funding the project.
The developers of the EACOP) project are CNOOC Uganda Limited, TotalEnergies EP Uganda, Tanzania Petroleum Development Corporation (TPDC) and the Uganda National Oil Company (UNOC).
‘The readiness of the first 100km of pipes for the EACOP is an indication of the Government of Uganda and the oil companies’ commitment to deliver First Oil. The achievement of these and other milestones is also a result of the stable macroeconomic environment, and Uganda’s legal and institutional framework that has and continues to enable the oil industry to thrive,” said Rubondo.
During the visit, which coincided with China’s Belt and Road Initiative forum, Ernest Rubondo and Liu Yongjie, the Chairman CNOOC International met at the CNOOC International Headquarters in Beijing on 21st October 2023.
“This meeting signifies an important development in the ongoing collaboration between Uganda and China in the oil and gas sector” said Rubondo. Liu and Rubondo discussed the progress of the Kingfisher project and received assurances of CNOOC’s commitment to fulfill its responsibilities on the project and expand cooperation to deliver a ‘shining star’ project in Uganda.
They also discussed strategies for the commercialization of Uganda’s oil and gas resources and ways to maximize the in-country value generated by these projects, extending to local communities and national enterprises, thereby further enhancing economic growth and development.
Rubondo and Liu agreed that the timely delivery of the project together with the development of national and community content are the best way to ensure a win-win situation for the Kingfisher project.
The delegation also visited the Shougang Beijing Group’s Qian’an steel mill, which supplies the steel plates used in the manufacturing of pipes.
“This is a crucial component of the project, as the quality and timely delivery of steel sheets are vital for the successful execution of the pipeline project which ensures the delivery of Kingfisher and Tilenga crude to Tanga for export” Rubondo said.
The China visit symbolises the collaborative efforts between Uganda and China in the oil and gas sector, with a particular emphasis on the successful execution of key projects like the Kingfisher, Tilenga and the East African Crude Oil Pipeline.
“The visit is not only an exchange with CNOOC and its major contractors, but also an understanding of the achievements of Chinese-style modernisation and the Belt and Road Initiative. These collaborations not only have economic implications but also contribute to the development and growth of both nations’ oil and gas industries” he added.
The PAU delegation also met various companies that have been contracted by both TotalEnergies and CNOOC Uganda to undertake works and services on the oil and gas projects in Uganda.
These contractors included COOEC (part of a joint venture undertaking the detailed engineering design, procurement, and construction of the Kingfisher project Central Processing facility and other facilities), COSL (drilling services), CENERTECH (Well completions tools, core cutting and fishing, drilling software and coating of the Kingfisher feeder pipeline) and CPP (construction of the EACOP pipeline and above ground installations).
EACOP will have the capacity to pump up to 230,000 barrels of crude oil daily down a specially designed 1,443 km-long `smart’ pipe from western Uganda to the Indian Ocean coastline of Tanzania.
Some parts of the pipe will be heat traced so that the high-grade, low Sulphur Ugandan crude, which is waxy at surface temperatures, will flow evenly. The pipeline, which will be buried along its length at up to 1.5 metres below the surface, will be lined with hi-tech insulation as well as sensors and cut-off valves to minimise the risk of leakages.
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