Yoweri Museveni commissioned the first of the oil drilling rigs in the Albertine’s
Kingfisher area operated by Uganda’s oil Joint Venture partner CNOOC.
The event which took place in Buhuka Kikuube
district on Tuesday has been described as one of the major milestones as the
Chinese developer promised to deliver first oil by 2025.
CNOOC plans to use the commissioned rig to
dill part of the 31 well pads from which oil will be extracted once production
kicks off. The President said Uganda will continue to develop its oil and gas resources alongside other sources of energy.
///Cue In “We shall develop our oil......
Cue Out.... as we develop the others”////
President Museveni used the occasion to
allay fears that the Oil being developed by Uganda may not be marketable given
the debate to shift from fossil fuels to cleaner energy options.
///Cue In " And even when the others are.....
Cue Out....they are the ones who caused these problems"///
crude reserves are estimated at 6.5 billion barrels, of which 1.4 billion
barrels are recoverable. According to the President, the 6.5 billion so far
discovered is less than half of the area under exploration.
In “This Petroleum resource
Out ....bitumbi bitumbi lake”///
Kingfisher Oil field which is operated by China
National Offshore Oil Corporation (CNOOC) Uganda Limited, on the shore of Lake
Others are a planned central Processing Facility
(CPF) with a capacity of 40,000 barrels of oil per day and 31 oil wells to be
drilled on 4 well pads, 16 kilometres of flow line,s and a55-kilometere feeder
pipeline from the central processing facility to the export hub and the proposed oil refinery at
Kabaale parish in Hoima district.
Twenty of these wells will be used to produce oil
while 11 of the wells will be used to inject water in the reservoir to help
Museveni commended the oil companies and scientists
that have made everything possible to ensure Uganda begins developing its oil.
"We started with smaller companies and subsequently
got big firms like CNOOC and TotalEnergies. I particularly thank CNOOC because
they are moving and I hope others are also moving. And the Chinese government
for encouraging their company to come and invest here. We have been working
with them since 1950s in liberating our people and now we are in economic
cooperation for mutual benefit,” Museveni said.
“I also thank the government of France because I
have not heard them making trouble apart from European Parliament which I told
to go to hell.”
commissioning of the drilling rig for the Kingfisher Development Project(KDF)
has sent excitement among sections of Ugandans. Some think oil production should
begin in the coming weeks.
have wondered why CNOOC should begin drilling when the construction of the refinery
meant to refine crude oil from King Fisher and Tilenga projects has not begun.
when the East African Crude Oil Pipeline meant to export crude to the
international market has not taken off. Others have asked where the crude oil
will go in the absence of the two commercialization projects inform of the
pipeline and the refinery.
Director of the Petroleum Authority of Uganda (PAU), Earnest Rubondo explained
that in order to produce the volumes that are expected from the Kingfisher and
Tilenga projects, drillings of the wells for production have to be done in
volumes require production from many wells. So you need to start drilling these
wells early. So that when the day of production reaches, you begin to have production
from the different wells.
to Rubondo the drilling that has been commissioned is for the first production well
that will produce oil in the Kingfisher field.
In “There will be.....
Out....and they go and drill other wells”///
to Rubondo, the s brand new state-of-the-art rig was specially designed for the
Kingfisher field and is the strongest that has been used in the country to
date, consuming about 6 megawatts of power.
“It has the capacity to drill up to 8 km long,
with noise-suppressing technology making it more environmentally friendly.” Said
said the wells to be drilled in the Kingfisher field will vary from 2600m to
7400 metres in length depending on how far the targeted part of the reservoir
is from the location, where the drilling will start.
Rubondo revealed that investment in the development of the Kingfisher oilfield is expected to cost over US$2 billion over the next 3 years until shortly after production starts and over US$1.5 billion over the remaining 20 years of the life of the oil field.
"US$ 346 Million was invested in the Kingfisher project in 2022 bringing the total cumulative investment in the project to US$ 1.07 billion at the end of 2022. About $580 Million is expected to be invested in KFDA in 2023 and a similar amount in 2024," he said
Rubondo said the recoverable cost of Kingfisher oil
field is $22 per barrel compared to international standard of $25 per barrel and
will account for the 15% of the total revenues the government expects to get from
oil.Peter Banura, the Kikuube district
chairperson, asked the government to invest back oil revenues into
developing the area to
befit an oil-rich area since they are the ones to be directly impacted
of the Kingfisher project is being undertaken by a joint venture of China Offshore
Oil Engineering Company and China Petroleum and Construction Corporation.
Authority of Uganda granted CNOOC Uganda Limited Consent to Drill the first three production wells of the Kingfisher field after reportedly fulfilling the legal
and regulatory requirements which include, preparation and submission of a geological
well proposal, and submission of a drilling program.
PAU was according to Rubondo satisfied with technical aspects of the drilling
rig and with CNOOC’s measures to ensure the safety of persons, equipment, The and