Uganda’s journey to first oil is steadily progressing, with significant milestones achieved in drilling and processing operations.
However, the start of production now depends on the completion of the East African Crude Oil Pipeline (EACOP) and the national refinery two critical projects that will unlock the country’s ability to transport and process its crude oil for both export and domestic use.
Speaking during a site update, Dennis Mulondo, a geologist at CNOOC Uganda Limited, explained that drilling operations at the Kingfisher oil fields have reached an advanced stage. The project involves constructing 31 wells on four pads, with 20 wells designated as producers and 11 as water injectors.
“We have the onshore drilling operations on which we’re going to build 31 wells on four pads. The 31 wells will have 20 producers, and 11 are water injectors. The purpose of the injectors is you pump water into them, then it pushes the earth towards the producers to increase the amount of oil which you can produce,” Mulondo said.
Mulondo further highlighted the sophisticated infrastructure designed to handle crude oil once production starts. He noted that a lake water upstream station has been set up to draw water for operational support and injection purposes. Flow lines connect the four pads to the Central Processing Facility (CPF), where the crude oil will be separated from sand, gas, and water before being transported.
“At the CPF, we remove the sand and water so that only crude oil is left. We then pump the crude oil through an eight-kilometre pipeline from the CPF to Kabaale,” he explained.
Despite this progress, Mulondo stressed that actual oil production cannot commence until the export and refining infrastructure is ready. “These 15 wells are sufficient. We needed 15 wells for first oil, so as a building part we are ready to produce. But as I have said, EACOP is not yet ready. The government also has a very big interest in the refinery, which is not yet ready,” he said.
“The President is very key on that, he wants not all the oil to be taken out of the country. So until those two are complete, we cannot produce oil. The wells are there, but without transport or refining, production cannot begin,” Mulondo added.
Ernest Rubondo, Executive Director of the Petroleum Authority of Uganda (PAU), praised CNOOC’s progress, describing the Kingfisher project as a major step toward Uganda’s long-awaited first oil.
“The Kingfisher project is supposed to have a total of 31 wells, and CNOOC Uganda Limited is moving very well. To start production, they need about 17 wells. If they have done 15, you can see how close they are getting to being ready for oil production. The other wells will be drilled even after production has begun,” Rubondo said.
Rubondo also acknowledged the cooperation of local communities and called for vigilance against misinformation. “The company has worked very well with the community. I would like to thank the communities for this support,” he said.
“The only challenges have come from some civil society organizations that have been funded by foreigners, but the communities have identified them and continue to support the project,” Rubondo added.
On the export side, the 1,443-kilometre EACOP pipeline remains the crucial link connecting Uganda’s oil fields to international markets via the Tanzanian coast. John Bosco Habumugisha, Deputy Managing Director of EACOP, reassured Ugandans that progress on the pipeline is on track.
“We are building an intelligent, innovative and sustainable pipeline system using green energy. We are using only hydropower. Uganda will be supplying power through UETCL while Tanzania will supply through Tanesco,” Habumugisha said.
“Beyond that, we are working with communities to ensure that we contribute to sustainable development where we operate. In the second half of next year, we should be able to see completion of this project. That is when we can talk about the world’s first oil,” he said.
The government is also prioritizing national content participation to ensure that Ugandans directly benefit from oil sector investments. Derrick Jonathan Mbabazi, National Content Manager for the EPC III Project, emphasized that empowering local communities is a key objective.
“National content refers to the degree through which Ugandan citizens, resources and local companies participate in the oil and gas industry,” Mbabazi said.
He continued and said that they have employed over 2,000 Ugandans on the Central Processing Facility, including 500 from local communities, many of whom have been trained and certified in trades like welding and scaffolding.
With 15 wells already drilled, Uganda is closer than ever to its first oil a milestone nearly two decades in the making since discoveries were first confirmed in 2006.
However, unlocking the sector’s full economic potential depends on the timely completion of the refinery and EACOP, which together hold the key to transforming Uganda into a regional energy hub and boosting government revenues, exports, and job creation.