Uganda’s President Yoweri Museveni in Jan. 2023 commissioned the country’s first oil rig to start drilling at the Kingfisher field in the western region district of Kikuube.
Located on the shores of Lake Albert, the oil rig is one of the four from which the country hopes to start production by 2025, with the three other rigs set to be installed at Tilenga oil field.
The first rig was installed in Nov. 2022 by China National Offshore Oil Corporation (CNOOC) following the country’s discovery of an estimated crude reserves base of 6.5 billion barrels about 20 years ago. Of this, 1.4 billion barrels are recoverable. At least 31 oil wells representing 15% of production are expected to be drilled on four well pads by CNOOC.
The other 85% located in the Tilenga area will be operated by the French TotalEnergies’, according to Ernest Rubondo, the Executive Director of the Petroleum Authority of Uganda.
Uganda plans to export some of the oil through the East African Crude Oil Pipeline while refining some of it to improve the country’s petro-chemical based industrial projects.
Already a number of companies have been sub-contracted to engage on various projects, with hundreds of investment opportunities still available for both local and international firms.
According to Rubondo, investment opportunities in the oil and gas sector are available in form of capital for the emerging infrastructure such as refining and transportation of petroleum commodities and products; service provision and contracts in the fields of engineering, procurement and construction to take forward the development of the infrastructure; development of the petrochemical industry; logistical services; construction and fabrication; waste management and treatment, and power generation using gas and some crude oil by independent power producers.
“The Government of Uganda welcomes investors and encourages the development of the country’s natural resources through mutual benefit and in a spirit of cooperation,” said Rubondo.
Experts have classified the same opportunities into three categories namely specialist, direct and indirect services.
Under the specialists category, opportunities are available in well services, rig hire, tangibles, feed and seismic services.
Under the direct categories, there are opportunities in the environmental services, field construction, specialist trades, mud/cuttings, site prep, infield services, inspections, international freight services, infield transport, mechanical, electrical and civil engineering, spare parts, and construction material.
The indirect category involves fuel, emergency services, camps, IT services, medical, personnel transport, security, crane hire, general trades, facilities management, waste management, training, telecoms, catering, custom clearance, communications and hotel services.
Uganda’s initial oil production will last at least 25 years.
About the Albertine Region
The Albertine Region where oil activities will mostly take place is located in the western region and covers parts of West Nile and Acholi. It is comprised of at least 30 districts. However, those close to the oil fields include Kibaale, Hoima, Kikuube, Masindi, Buliisa and Kiryandongo in Bunyoro plus Kamwenge, Kyenjojo, Notoroko, Kasese, Bundibugyo and Kabarole in the Rwenzori region. Kisoro, Kabale, Kanungu and Rukungiri, Bushenyi, Sheema, Ibanda, Ntungamo and Mitooma in Ankole and Kigezi, are also in the vicinity as well as Nebbi, Pakwach, Zombo, Arua, Maracha, Koboko, Yumbe, Adjumani and Moyo districts in the West Nile. It will also covers Nwoya and Amuru in the Acholi sub-region.
Already, Kabaale International Airport is under construction in Hoima and this will see flights landing and leaving the oil region without having to travel to the other international airport in the country – Entebbe.
Most of the roads in the Albertine region have been tarmacked and there is easy connectivity from one district to the other.
