AfrOil: McDermott, Sinopec on track to win $2bn Ugandan contract

US-based McDermott International has joined forces with Sinopec International Petroleum Service Corp. (SIPSC), a subsidiary of China’s Sinopec, to provide support services at the Tilenga oilfield in Uganda. The consortium partners have received a conditional letter of award (LoA) from TotalEnergies (France), the operator of Tilenga, and hope to sign a contract once all the shareholders in the upstream project reach agreement.

McDermott estimates the value of the proposed deal at $2bn. The consortium hopes to secure an engineering, procurement, construction and commissioning (EPCC) contract that will provide for the establishment of a production complex to extract 200,000 barrels per day (bpd) of crude oil from the Tilenga field. When finished, the complex will consist of 31 well pads linked to a central processing facility (CPF).

The consortium partners will be working at the Tilenga field, which straddles Blocks 1 and 2 in western Uganda. TotalEnergies intends to drill 426 development wells there and will use underground pipelines to pump production to a treatment facility in Kasenyi.