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Chinese Company Slated For Kingfisher oil FEED Study

Uganda Radio Network has learnt that ten engineering firms submitted bids for the Kingfisher Front-End Engineering Design FEED. The selection of the winning bidders was reportedly handled by Ugandas parent company China National Offshore Oil Corporation CNOOC.
24 Feb 2017 09:49
projects like this undertaken by China offshore Engieering Company could be seen on Lake Albert soon
China's Offshore Oil Engineering Company (COOEC) is leading the bid to undertake the Front-End Engineering Design for the Kingfisher oil well at Lake Albert.

Uganda Radio Network has learnt that ten engineering firms submitted bids for the Kingfisher Front-End Engineering Design (FEED). The selection of the winning bidders was reportedly handled by Uganda's parent company China National Offshore Oil Corporation (CNOOC).

Sources at the Energy Ministry indicate that China National Offshore Oil Corporation (CNOOC) Uganda has concluded the bidding that has seen China Offshore Oil Engineering Company emerge the leading contender for the lucrative deal.

Sources further indicate that China Offshore Oil Engineering Company (COOEC) is partnering with another Chinese firm known as Petroleum Exploration and Development Research Institute to execute the Kingfisher deal. Petroleum Exploration and Development Research Institute is a unit of ­Sinopec Jianghai which has vast experience in executing projects from water (onshore).

The two reportedly provided the lowest commercial bid for the FEED in areas like well pads, central processing facilities, infield flow lines, a lake water extraction station, among others.

However, China National Offshore Oil Corporation (CNOOC) Uganda Corporate Social Manager, Zakalia Lubega in a response to an email from Uganda Radio Network however said the procurement for Kingfisher was yet to be concluded.

Information on China's Offshore Oil Engineering Company (COOEC) website indicates that it has executed international projects that accounted for over 60 percent of its work in 2016. The seven projects include Russia's Yamal, Myanmar Zawtika and Brazil's FPSO.

The process of procuring of services for Front End Engineering Design (FEED) for kingfisher field Development project in Uganda has been going on since March 2016 when CNOOC requested firms to express interests in the work.

The first two rounds had international companies like Australia's Worley Parsons, UK's Petrofac and French's Technip bidding. Chinese bidders included China Petroleum Engineering, China Huanqiu Contracting & Engineering and Sinopec Shengli Petroleum Engineering.

The bid winner in the two rounds was not announced because China National Offshore Oil Corporation (CNOOC) said the would-be winner's costs were way above its budgets.

This month CNOOC and its Joint Venture partners Total and Tullow signed agreements with foreign engineering firms to conduct Front-End Engineering Designs (FEED) for works in Bulisa and Nwoya. Energy and Mineral Development Minister Irene Muloni said the signed agreements would not cover works for the King fisher's block 3.

The completion of Front-End Engineering Designs for King Fisher will pave way for construction of a central facility at Buhuka with the capacity of 20,000 barrels per day and later 40,000 per day.

CNOOC and other joint venture partners are expected to complete the front end engineering designs before end of this year. They also have up to December 31 to make a Final Investment Decision as per the signed production sharing agreements.

The companies are expected to invest USD 8 billion in infrastructure required for all production licenses. The investment will be for drilling about 500 wells, construction of central processing facilities and feeder pipelines among others.

The companies are also expected to conduct social impact assessments, resettlement action plans and front end engineering designs for respective projects with first oil expected in 2020.