Uganda is planning to sink as much as $20 billion in drilling over 500 wells to expand its nascent oil industry

Uganda to drill over 500 oil wells as it moves to expand its nascent oil industry
  • Uganda plans to develop Kingfisher and Tilega oilfields at a cost of $5 billion.
  • Total, CNOOC and Tullow Oil jointly own the Kingfisher and Tilega fields and the Ugandan government is in negotiations with Tullow to reduce its stake in the projects.
  • Permanent Secretary of Energy, Robert Kasande, disclosed that the $5 billion forms part of the $15 billion to $20 billion projected to flow into the country’s developing oil industry in three to five years.

The ‘Pearl of Africa’ is set to develop two oil wells at a cost of $5 billion as it moves to tap and expedite the growth of its nascent oil industry.

Uganda plans to develop Kingfisher and Tilega oilfields, which are currently in the middle of a tax dispute between government and three oil companies.

Permanent Secretary of Energy, Robert Kasande, disclosed that the $5 billion forms part of the $15 billion to $20 billion projected to flow into the country’s developing oil industry in three to five years, including the construction of a refinery and crude pipeline.

“The funding will be used to drill over 500 wells and construct two central processing facilities and a water plant. Plans are also in the pipeline to award exploration companies five blocks by the end of this year,” he explained.

Total, CNOOC and Tullow Oil jointly own the Kingfisher and Tilega fields and the Ugandan government is in negotiations with Tullow to reduce its stake in the projects and allow final investment decisions to be concluded.

In its trading update, the company indicated that, joint venture conversations with the government of Uganda are ongoing and Tullow remains committed to reducing its equity stake in the project ahead of a final investment decision.

The five blocks on offer are located in the Albertine Basin; namely: Block 01 (Avivi), Block 02 (Omuka), Block 03 (Kasuruban), Block 04 (Turaco) and Block 05 (Ngaji).

The bidding process will run for five months. The licensing round is scheduled to conclude by December 2020, with successful firms set to receive Petroleum Exploration Licenses.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

4 side effects of being a virgin for too long, according to research

4 side effects of being a virgin for too long, according to research

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

Willy Paul apologizes to Kenyans on Behalf of Diana B

Willy Paul apologizes to Kenyans on Behalf of Diana B

Zari Hassan lectures Tanzanians over her viral black innerwear video

Zari Hassan lectures Tanzanians over her viral black innerwear video

DP Ruto's firm wins Sh190M Nairobi county gov't tender

DP Ruto's firm wins Sh190M Nairobi county gov't tender

Diana Marua hospitalized, Bahati gives update [Photos]

Diana Marua hospitalized, Bahati gives update [Photos]

Betty Kyallo shares photos of the first Subaru she bought after joining KTN

Betty Kyallo shares photos of the first Subaru she bought after joining KTN

North Korean man who smuggled 'Squid Game' into the country to be sentenced to death

North Korean man who smuggled 'Squid Game' into the country to be sentenced to death