Uganda makes big stride towards first oil 

by Business Times
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Uganda’s oil industry registered another key milestone on January 24, 2022, with the launch of the spudding  the Kingfisher oil field.

CNOOC Uganda Limited operates the Kingfisher field on behalf of the  Joint Venture Partners TotalEnergies E&P and Uganda National Oil Company (UNOC).

The spudding ceremony was graced by Uganda’s President, H.E. Yoweri Museveni, who used reassured the world of the country’s resolve to exploit its oil and gas resources sustainably.

The President recapped how the patience of his NRM Government to develop the resources had led to this, among other key milestones.

“I was approached by the Dutch company Shell to give them the go-ahead to look for this oil, but I hesitated after finding out we did not have any Ugandan experts on oil. This should be a lesson to all leaders to avoid bumping into issues of Africa.” The President said.

President Museveni also hailed the Chinese and French Governments for the continued support offered to Uganda to develop her resources. He said he was not amused by the European Parliament (EU) resolution that called for halting Uganda’s oil project.

He also urged locals in the Albertine region to embrace agriculture, which he says is the secure direct way of benefiting from the oil and gas resources being developed in the country.

“All people working in oil need food. Grow enough food, so they buy it from you,” said the President.

Ms Ruth Nankabirwa, the Minister of Energy and Mineral Development (MEMD), revealed that the country has embarked on an ambitious process of encouraging more exploration to discover more resources to take advantage of the new infrastructure being put in place.

“Government announced the Second Licensing Round in May 2019 with five blocks on offer. The Cabinet this month approved the issuance of Production Sharing Agreements for two of the blocks, Turaco and Kasuruban Blocks and grant of their respective Exploration Licenses,”revealed Ms Nankabirwa.

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The Minister also used the event to issue the East African Crude Oil Pipeline (EACOP) construction licence to EACOP Limited, which Mr Martin Tiffen, the company’s managing director, received on behalf of the partners.

“The company applied for a license in July 2022 to construct the pipeline. We reviewed the application, held several discussions, found it satisfactory, and subsequently sought approval from the Cabinet for the grant of license. Last week, the government approved the issuance of the license,” Minister Nankabirwa remarked.

The license grants EACOP Ltd a go-ahead to start construction works in Uganda as part of the development of the 1,443km crude oil pipeline that will transport Uganda’s oil from Kabaale terminal, Hoima in Uganda, to the port of Tanga in Tanzania.

In his brief to the President, Mr Ernest Rubondo, the Executive Director of the Petroleum Authority of Uganda, revealed that the Kingfisher oil field is about 15km long and 3km wide and is about 2km below Lake Albert.

The oil field is estimated to have a total of 560 million barrels of oil in place, out of which 190 million (33%) are expected to be produced over 20-25 years.

“The oil field is expected to have a maximum production of 40,000 barrels of oil per day for five years, after which production will begin to decline,” Mr Rubondo said.

About Kingfisher Oil project

oil

The Kingfisher Project is planned to develop the Kingfisher, Mputa, Nzizi and Waraga fields. The Project will produce 40,000 Barrels of Oil per day during peak production. The crude will be treated at a Central Processing Facility (CPF) located in the southeastern shores of Lake Albert. The Kingfisher development wells will be highly deviated wells from onshore surface locations targeting the offshore reservoirs.

The Front-End Engineering and Design (FEED) for the Project was completed in February 2018. The Environmental and Social Impact Assessment (ESIA) was completed, and certificate issued by the National Environment Management Authority in February 2020.

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