Uganda government has said 72 oil wells drilled in the country’s Albertine Region are ready for commercial production slated for next year.
The minister of energy and mineral development, Ruth Nankabirwa Ssentamu, told a media gathering on Wednesday 72 wells had been drilled at two production areas.
In her updates, the minister said so far Uganda has two production areas, namely Tilenga and Kingfisher.
However, there are several other projects such as the East African Crude oil Pipeline (EACOP), a refinery and international airport among others.
In 2022, a Final Investment Decision was announced by joint venture partners TotalEnergies E&P Uganda, China National Offshore Oil Company (CNOOC) Uganda Ltd, and Uganda National Oil Company (UNOC) to undertake various upstream projects on behalf of the Government of Uganda.
The projects include Tilenga and Kingfisher production areas, and the EACOP to transport crude oil to the east African coast in Tanzania, and the Uganda Refinery project.
The minister said the Tilenga Project, which spans both the North and South of the Nile in Nwoya and Buliisa Districts, is making remarkable progress.
“Sixty three (63) out of the planned 426 wells have been successfully completed, with positive hydrocarbon shows in the targeted reservoirs,” Nankabirwa said.
“Drilling activities have so far focused on six of the 31 well pads that will host 426 producer and injector wells for the Tilenga project. All three rigs designated for drilling are operational, and a total of 63 wells have been drilled as of August 16, 2024,” the minister added.
Nankabirwa noted that development plans for a Liquefied Petroleum Gas (LPG) facility had already been submitted to the government and are currently awaiting approval, and issuance of a license.
“Drilling activities have so far focused on six (6) of the thirty-one (31) well pads that will host 426 producer and injector wells for the Tilenga project. The well pads are Jobi-Rii 05 & 04, Ngiri 03 & 01, and Gunya 01 & 04. All three rigs designated for drilling are operational, and a total of 63 wells have been drilled as of August 16, 2024. Currently, seven well pads are over 85% complete and ready to receive a rig,” Nankabirwa explained.
According to the minister, civil works at the Tilenga Industrial Area, which is supposed to host the central processing facility, a drilling support base, a construction camp, and other facilities, are 99.7% complete.
At the Kingfisher Oil field operated by CNOOC Uganda Limited, nine of the eleven wells required for First Oil had been successfully drilled.
“The development plan (at Kingfisher) includes a central processing facility with a capacity of 40,000 barrels per day and the drilling of 31 wells across four well pads,” the minister said.
In January last year, Ugandan President Yoweri Museveni launched the drilling of oil for commercial production at the Kingfisher Oil Field.
The minister also said China Petroleum Pipeline Engineering, the EACOP construction contractor, “had begun civil works at the pump stations and main camp and pipe yard sites in both Uganda and Tanzania.” EACOP runs 1,443km from Hoima district in western Uganda to the Tanga Port in Tanzania.
“Contracts valued at $5 billion have been awarded for the Tilenga, Kingfisher, and EACOP projects, out of the $7.2 billion approved by the Petroleum Authority of Uganda,” Nankabirwa said.
Uganda in 2006 discovered 6.5 billion barrels of oil, of which 1.4 billion barrels are currently commercially viable, according to the ministry.