Since the first discovery was made at Mputa-1 in 2006, Tullow has drilled over 80 wells in the Albert Rift Basin and proven recoverable resources of around 1.7 billion barrels of oil.
The Lake Albert Development Project is a major development which expects to achieve around 230,000 bopd when it reaches plateau. Development Plans were approved by the Government in August 2016 which Tullow expects will require $5.2 billion gross of upstream capex to develop the first 1.2 billion barrels of oil with $3 billion expected to be required to reach First Oil around three years after FID. The Government of Uganda has agreed an export route through Tanzania and the current estimate for the pipeline capital cost is around $3.5 billion. The pipeline is expected to be funded through a combination of debt and equity.
The Joint Venture Partners continue to work towards reaching FID for the development project around the end of 2018 with operational activity continuing as planned. The upstream FEED is now complete and initial technical and commercial reviews of this work have begun, which will ultimately result in the award of the Engineering, Procurement and Construction (EPC) contracts. Important geophysical and geotechnical surveys across the upstream area, including at the proposed location for the Central Processing Facility, were completed in June. The upstream ESIA has been completed and has been submitted to the National Environmental Management Authority for review with approval expected in the third quarter.
Discussions on the key pipeline project agreements continue between the Joint Venture Partners and the Ugandan and Tanzanian Governments. The pipeline FEED and EPC tender process for the pipeline have been completed with the award to be made in the second half. Project financing for the pipeline is also progressing with the development of the financial model ongoing. In the second half, Tullow anticipates completing key commercial, technical and land agreements with the Governments of Uganda and Tanzania as well as the submission of an ESIA for the pipeline to both Governments.