KAMPALA, Feb 15 (NNN-AGENCIES) — Uganda is on track for its first oil output by April 2025, putting the East African nation on the list of oil-producing countries.
The move is expected to boost its economy, and open up investment and employment opportunities.
In western Uganda, drilling has already started at the country’s first-ever oil production wells, despite mounting criticism from environmental activists.
The Kingfisher oil field, operated by the China National Offshore Oil Corporation (CNOOC), is expected to drill more than 30 wells and produce about 40,000 barrels of oil at its peak.
It is a few kilometres away from the Tilenga oil field, managed by France’s TotalEnergies. Drilling there begins later this year and it is expected to produce some 190,000 barrels daily.
Crude oil will be pumped through the East African Crude Oil Pipeline, believed to be the longest heated export pipeline in the world.
It will run more than 1,400km from Hoima in western Uganda to Tanzania’s Tanga port, where the transported oil will be sold to global markets.
Uganda is also looking to partner with other international firms to build an oil refinery to produce finished oil products for local and regional markets.
“Momentum is picking up on the ground, work is getting busier,” said Martin Tiffin, managing director at the East African Crude Oil Pipeline.
Uganda will have to borrow much of the money it needs to fund these projects, with China being a major source. The rest will come from oil companies.
Residents living where the pipeline will run through have been relocated to other areas to make way for construction.
The Ugandan government said more than 60 per cent of those affected by the project have been compensated so far. — NNN-AGENCIES
