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Uganda Aims to Achieve First Oil Production by 2025, Says UNOC CEO

The oil extracted will be transported via the East African Crude Oil Pipeline (EACOP), a project valued at $3.5 billion. This pipeline will facilitate the movement of crude oil to the port of Tanga in Tanzania for global export.

Now Then Digital by Now Then Digital
August 18, 2023
in National, News, Uganda
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Uganda to Produce First Oil by 2025

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Proscovia Nabanjja, CEO of Uganda National Oil Company (UNOC), has confirmed that Uganda remains on schedule to achieve its inaugural oil production by 2025.

KAMPALA, UGANDA | NOW THEN DIGITAL — Proscovia Nabanjja, CEO of Uganda National Oil Company (UNOC), disclosed that Uganda is on course to achieve its inaugural oil production by 2025.

UNOC says Uganda to Produce First Oil by 2025
Uganda Aims to Achieve First Oil Production by 2025, Says CEO of UNOC

Nabanjja confirmed this at the launch of the 90 Days of Oil and Gas Media Campaign by the Uganda Chamber of Mines and Petroleum.

She affirmed that drilling activities have begun. Extracted oil will be transported through the $3.5 billion East African Crude Oil Pipeline (EACOP) to Tanzania’s Tanga port for global export.

Expected to operate by 2025, the EACOP can convey up to 246,000 barrels of crude daily to international markets.

Nabanjja highlighted UNOC’s diverse project portfolio, spanning upstream, midstream, and downstream segments.

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She provided reassurance regarding sector progress. Stressing the significant economic impact, Nabanjja mentioned the sector’s potential contribution of $15 billion to $20 billion, possibly exceeding $50 billion, given a barrel price around $50.

“I just wanted to reassure you all that the sector has progressed. There has been fatigue before, but it’s now in action mode. And we encourage all Ugandans to take part. It’s not only about the direct benefits, their indirect and induced benefits, the sector is bringing $15 billion to 20 billion US dollars. We are likely to get anywhere above 50 billion within the lifetime of the projects. And that’s only assuming that the price of a barrel will be seated at about $50. you can see how much impact this industry is going to have on our economy,” she said.

Nabanjja detailed the drilling initiatives for the Kingfisher and Tilenga wells. Around 31 wells are planned for Kingfisher, and over 420 wells for Tilenga.

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This aims to yield about 40,000 barrels per day from Kingfisher and approximately 180,000 barrels per day from Tilenga, totaling between 230,000 and 240,000 barrels per day. Out of this, 60,000 barrels will be allocated to the refinery, with the rest directed to the East African crude oil pipeline.

“The drilling of the first Kingfisher well and also drilling some wells on Tilenga started. About 31 wells are intended to be drilled on Kingfisher, while on Tilenga, over 420 wells are planned. The intent again is to produce about 40,000 barrels of oil per day from Kingfisher and about 180,000 barrels of oil per day from Tilenga, giving us a total of anywhere between 230,000 and 240,000 barrels of oil per day. Out of that, 60,000 will go to the refinery, while the balance will go to the East African crude oil pipeline.”, Nabanjja added.

Meanwhile, Jonan Kisakye, Uganda Insurance Association’s CEO, highlighted the insurance sector’s gains following the Final Investment Decision (FID). They issued policies worth approximately $15.2 million for the Tilenga project and about $5.9 million for CNOOC.

“We have been able to issue three policies for the Tilenga project amounting to about $15.2 million, equal to about $2.7 million per loan, and for CNOCC, we are in the range of about $5.9 million in premiums,” Jonan said.

During the same event, Aggrey Ashaba, Chamber General Secretary, explained the campaign’s objective: to showcase post-FID achievements and focus on Environmental, Social, and Governance (ESG) aspects, as well as human rights in the Oil and Gas sector.

Work on the Kingfisher Feeder Pipeline is ongoing.

It will deliver crude oil from the Kingfisher project in Buhuka, Kikuube District to the Kabalega Industrial Park (KIP) in Hoima.

Key features
-Over 40 kilometres
-heated
-insulated
– Diameter of 10 inches
– Thickness… pic.twitter.com/S6xt8JMzqE

— UNOC (@UNOC_UG) August 15, 2023

Editor’s Note: Please contact press@nowthendigital.com if you find any of the content to be inaccurate or outdated. 

You’re reading nowthendigital.com — which breaks the news about Uganda, Kenya, Nigeria, South Africa and the rest of the world, day after day. Be sure to check out our homepage for all the latest news, and follow NOW THEN DIGITAL on YouTube, Google, Web Stories, Google News, Medium, LinkedIn, Twitter, Reddit, Pinterest, Linktr, Buy Me a Coffee, Truth Social, and Flipboard to stay in the loop.

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