Kampala, Uganda | THE BLACK EXAMINER | During a plenary sitting on October 25, 2023, the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa, informed Parliament that the government is making significant progress toward commencing oil production by the end of 2025.
Nankabirwa stated, “Government and its partners are working diligently, and I am pleased to report that we are on track to have our first oil by the end of 2025.” She presented this update while discussing the status of oil and gas projects in the country.
To date, the government has successfully drilled 11 oil wells, with eight located in the Tilenga area and three in the Kingfisher region. The Tilenga and Kingfisher projects have the capacity to produce up to 190,000 barrels and 40,000 barrels of oil per day, respectively, and together, they will have 457 wells and 35 well pads.
The construction of Central Processing facilities in both the Kingfisher and Tilenga areas is progressing according to schedule, aiming to be ready by 2025. Currently, Tilenga’s facility is 33 percent complete, while Kingfisher’s facility has reached 12 percent completion.
Regarding oil exploration, Nankabirwa mentioned that the Ministry is expanding its resource base by granting additional licenses to companies. This includes exploration licenses issued to Armour Energy Ltd, Oranto Petroleum Ltd, UNOC, and DGR Global over various blocks.
The Ministry is also working on finalizing a comprehensive National Petroleum Policy by the end of the current financial year to create a conducive environment for oil exploration, development, production, and commercialization, while also addressing energy transition initiatives.
The development of a 60,000 barrels per day oil refinery in Kabaale, Hoima district, is actively underway.
Nankabirwa provided an update on the East African Crude Oil Pipeline (EACOP), indicating that civil works started in August 2023, and the Resettlement Action Plan (RAP) for affected persons in the 10 districts where the EACOP crosses is ongoing.
In response to concerns raised by members of Parliament regarding the progress of oil well construction, Nankabirwa assured that construction commenced in the current year and that the planned number of wells will be realized by 2025.
She also pointed out that shifts in deadlines have been influenced by Non-Government Organizations (NGOs) and Civil Society Organizations that have campaigned against the EACOP project.
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