Oil
Uganda to unveil first commercial oil drilling program targeting output in 2025
Uganda will commission on Tuesday the first of its four planned oil drilling rigs and start drilling the first production well, its petroleum agency said, a key milestone as the country races to meet its target of first oil output in 2025.
The East African nation discovered commercial reserves of petroleum nearly two decades ago but production has been
repeatedly delayed by a lack of infrastructure like a pipeline.
For the latest headlines, follow our Google News channel online or via the app.
“Today we mark another milestone and move a step closer to first oil with the launch of the drilling of development and
production wells for the Kingfisher oil fields,” government-run Petroleum Authority of Uganda (PAU) said on Twitter.
PAU, which regulates the petroleum sector, said President Yoweri Museveni was due to officiate “at the Spudding (drilling)
campaign launch” at a site in Kingfisher project area, one of the country’s two commercial oil development areas.
Kingfisher, located near the southern flank of Lake Albert in the country’s west, is operated by China’s CNOOC. Uganda’s second project area, Tilenga, located north of Lake Albert astride River Nile, is operated by France’s TotalEnergies.
The two firms co-own all of Uganda’s existing oilfields alongside the state-run Uganda National Oil Company (UNOC).
At peak, Uganda plans to produce about 230,000 barrels of crude oil per day.
The rig due to be launched on Tuesday, will be used to drill a total of 31 wells in Kingfisher while three rigs to be deployed later in Tilenga project area will drill a total of 426 production wells, according to the Ministry of Energy and Mineral Development.
Uganda’s crude reserves are estimated at 6.5 billion barrels, of which 1.4 billion barrels are recoverable.
The country will export its crude through an electrically heated, 1443-kilomteer pipeline from the oilfields to neighboring Tanzania’s Indian Ocean seaport of Tanga.
Read more: Yellen says Russian oil price cap could save African countries $6 bln annually
Also Read
-
US to increase pressure on China to stop importing Iranian oil, Iran envoy says
The Biden administration’s top Iran envoy said it will increase pressure on China to cease imports of Iranian oil as the US tries to enforce nuclear ... Middle East -
Oil climbs as traders weigh China demand outlook, Russian supply
Oil rose on expectations of rising demand in the wake of China’s reopening, while the US dollar eased and risks to Russian energy supplies came into ... Energy -
Oman energy firm OQ to sell 49 percent stake in oil-drilling unit IPO
Oman energy firm OQ SAOC plans to sell up to 49 percent of its oil drilling unit Abraj Energy Services SAOC in an initial public offering, ... Energy -
G7 agrees to review level of price cap on Russian oil in March: US Treasury
Group of Seven officials have agreed to review the level of the price cap on exports of Russian oil in March, later than originally planned in order ... World News -
Yellen says Russian oil price cap could save African countries $6 bln annually
Russia’s war against Ukraine is hitting Africans particularly hard by exacerbating food insecurity and putting an unnecessary drag on the continent’s ... Energy -
Iran’s oil gushes into global market as China imports surge
Iran’s oil exports are surging, offering solace to both Tehran and a global market fretting over the prospect of sanctions squeezing Russian supply. ... Energy
