Covid-19 Impact on EACOP, LNG and Ugand’s Tilenga Projects. Project Status and Industry’s Response.

Hello all.

Welcome to the top energy pick of the week. Your weekly updates on projects and key development in the East African oil and gas space.

My suggestion to your families is that remain safe and healthy, wash your hands, and be positive. Our industry and our family will emerge stronger from this downtime.

This spotlight provides insights on the Coronavirus impact on the East African oil and gas projects and the industry ‘s response. This spotlight highlight status updates of the brightest projects in East Africa. East African crude oil pipeline (EACOP), liquefied natural gas (LNG) projects, and Uganda’s upstream Tilenga project.

Let’s dive into:

TOTAL deal catalyst for Uganda Oil COVID-19 Should not delay Upstream FID

This is a great article show the East African oil and gas response on COVID-19 is unique. While many operators have placed a huge emphasis on cost reduction and some are terminating the project. On April 23, Total announced to acquire UK based Tullow oil company’S interest in the Uganda Lake Albert project. The deal worth $575 million.

The deal is a living testimony that the future is bright in the East African oil and gas industry.

The article argues that COVID-19 can’t affect the final investment decision on the Tilenga project. But the execution of the project can be challenging if borders are shut down the movement of people and goods across the borders. Especially if most of the supply chain will be sourced from overseas.

Uganda -Tanzania Crude Oil Pipeline Construction Plannedene for 2021

The article highlight the status of the $3.5-billion East African Crude Oil Pipeline project as well as Tanzania’s LNG project. The article highlight the construction of the East African crude oil pipeline project is expected to begin in April 2021.

Industry analyst project that new project sanctioning at risk. And everything in the second year at risk. Considering cash flow is struggling. So financing is the most important element right now.

What’s Next?

Covid-19 had an indirect and direct impact for some but most operators and planned projects who gas and oil aimed at the domestic market seem to be relatively secure. Projects will be delayed. But not all. Some of the East African LNG projects should go through. If you think about mega Mozambique’s LNG projects will continue to deliver its capacity.