Beijing, China 30th October 2023 – Panyu Chu Kong (PCK) Steel Pipe Co., Ltd, the company contracted to supply line pipes to the East Africa Crude Oil pipeline (EACOP) has said the first batch of 100 kilometres of pipes are completed 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” Mr. Xie Leshan the PCK President said at a meeting with a delegation of the Petroleum Authority of Uganda (PAU) led by Mr. 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.
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 Government of Uganda and the oil companies’ commitment to deliver First Oil. The achievement of these and other milestones is also as 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 Mr. Rubondo.
During the visit, which coincided with the China’s Belt and Road Initiative forum, Mr. Ernest Rubondo and Mr. 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 Mr. Rubondo.
Mr. Liu and Mr. Rubondo discussed the progress of the Kingfisher project and received assurances of CNOOC’s commitment to fulfil its responsibilities on the project and expand cooperation to deliver a ‘shining star’ project in Uganda.
Also discussed were strategies for the commercialisation of Uganda’s oil and gas resources and ways to maximise the in-country value generated by these projects, extending to local communities and national enterprises, thereby further enhancing economic growth and development.
Mr. Ernest and Mr. Liu agreed that timely delivery of the project together with the development of national and community content are the best way to ensure a win-win situation from the Kingfisher project.
The delegation also visited the Shougang Beijing Group’s Qian’an steel mill, which is supplying 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” Mr 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 1,443km-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 sensors and cut-off valves to minimise the risk of leakages.
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