Uganda On Course for First Oil in 2025
Uganda’s journey towards its first oil production by 2025 is on track, with critical milestones achieved in the Tilenga and Kingfisher projects, Hon. Dr. Ruth Nankabirwa Ssentamu, the Minister for Energy and Mineral Development, announced at a press conference for the media.
She confirmed that 63 out of the planned 426 wells in the Tilenga project have been successfully drilled, surpassing the target necessary for first oil. Additionally, 9 out of the 11 wells required for first oil in the Kingfisher project have also been completed.
In addition to the drilling achievements, the Minister pointed out other critical developments, including the near completion of civil works at the Tilenga Industrial Area and the ongoing construction of the Central Processing Facility (CPF) at both the Tilenga and Kingfisher sites. These facilities are vital to Uganda’s oil production capacity and are expected to be fully operational in time for the first oil.
Speaking at the Ministry of Energy and Minerals offices in Kampala, Hon. Dr. Nankabirwa underscored Uganda’s progress in the oil and gas sector as a testament to the country’s determination to become a key player in the global oil market.
She emphasized that the Tilenga and Kingfisher projects, which are critical components of Uganda’s oil development strategy, are advancing steadily. With 63 out of 426 wells completed in Tilenga and 9 out of 11 in Kingfisher necessary for first oil, Uganda is firmly on track to achieve first oil by 2025.
The Minister also highlighted the strategic importance of the East African Crude Oil Pipeline (EACOP) and the Uganda Refinery, noting that these midstream projects are crucial in ensuring that Uganda maximizes the economic benefits from its petroleum resources.
“Our integrated approach, which includes the upstream, midstream, and downstream sectors, positions Uganda to significantly contribute to the global oil supply, fostering economic growth and boosting national revenue,” she said.
Dr. Nankabirwa also reaffirmed the government’s dedication to balancing economic growth, social development, and environmental conservation as the country navigates its path to prosperity. “Uganda’s leap in economic growth is partly based on the development of its oil and gas resources, which, once commercialized, will significantly impact all Ugandans,” she noted.
“These developments are not only pivotal for Uganda’s economy but also have significant implications for the global energy market. Uganda’s oil reserves, estimated at 6.5 billion barrels with 1.5 billion barrels recoverable, are set to make the country a key player in the global oil industry. The successful completion of these projects will ensure a stable and reliable supply of energy resources, contributing to global energy security.”
Dr. Nankabirwa emphasized Uganda’s commitment to transparency and sustainability, highlighting the ongoing review of the National Oil and Gas Policy to align with the dynamic global environment. “Balancing economic growth, social development, and environmental conservation remains a priority as we navigate our path to prosperity,” she said.
Key Information:
Upstream Projects:
· Exploration: Ongoing efforts to increase Uganda’s petroleum reserves include exploration licenses granted to Oranto Petroleum Limited, Armour Energy Uganda Limited, Uganda National Oil Company, and DGR Energy Turaco Uganda SMC Limited.
· Tilenga Project: Progress is marked by the successful drilling of 63 wells, with civil works at the Tilenga Industrial Area 99.7% complete.
· Kingfisher Project: Nine of the eleven wells required for First Oil have been successfully drilled, with significant progress in land acquisition and infrastructure development.
Midstream Projects:
· East African Crude Oil Pipeline (EACOP): EPCMC activities are well underway, with civil works at the Main Camps and Pipe Yards progressing steadily. Seven batches of line pipes, totaling 500 km, have been delivered to Tanzania.
· Uganda Refinery Project: Negotiations are ongoing with Alpha MBM Investments LLC for key commercial agreements, with project implementation expected to commence promptly.
Downstream Projects:
· Petroleum Supply: UNOC has taken significant steps towards securing Uganda’s petroleum needs, including signing a supply agreement with Vitol Bahrain and obtaining a petroleum license from the Energy and Petroleum Regulatory Authority (EPRA) in Kenya.
Background History:
Following the landmark Final Investment Decision announced in 2022 by TotalEnergies E&P Uganda, CNOOC Uganda Ltd, and Uganda National Oil Company (UNOC), Uganda’s vision for harnessing its oil and gas resources is steadily materializing. The Tilenga and Kingfisher projects, with investments upwards of $6 billion, alongside the EACOP ($5 billion) and the Uganda Refinery project ($4 billion), represent a combined investment of approximately $20 billion into Uganda’s economy.
For More Information:
For more information or media inquiries, please contact: Dr Patricia Litho, Spokesperson for Ugandan Ministry of Energy and Mineral Development
