The Energy and Mineral Development Minister, Ruth Nankabirwa, has asked Ugandans to prepare and position themselves to tap into opportunities that will accrue from the oil and gas sector following the signing of the Final Investment Decision to kick start all oil-related activities.
Officiating at the groundbreaking ceremony for the Pre-drilling civil works contract 1 for the Kingfisher Development Area-KFDA in Buhuka village in Kyangwali sub-county in Kikuube district on Friday, Nankabirwa said that it is time for Ugandans to massively invest in the oil and gas sector now that the oil companies and the government have signed the final investment decision-FID.
She said that the government has put in place an enabling legal framework for the participation of Ugandans in oil and gas activities but many Ugandans are not bothered to take up the available opportunities.
Nankabirwa said Ugandans should not just sit and see thinking that oil money will be wired into their pockets, saying they must invest in hotels, transport, accommodation, logistics, security, construction and engineering firms among other services as well as supplying food to benefit from the oil and gas sector.
According to Nakankabirwa, the government is committed to ensuring that the first oil is ready by the first quarter of 2025, adding that no one is going to back-track on the journey to developing the oil and gas production activities in Uganda
Nankabirwa further challenged other professionals, contractors, manufacturers and suppliers with the necessary competencies and capacity to extend their sphere of influence and explore the available opportunities in the oil and sector.
The contract for the Pre-drilling civil works for the Kingfisher Development area has been awarded to Excel Construction Company Limited, a Ugandan firm at USD 23.3 Million. The contract will last for 20months. The KFDA Project shall produce 40,000 barrels of oil per day during peak production and a Central Processing Facility shall be constructed at Buhuka Flats. Other facilities include 31 wells on four well pads; access roads; water intake points, safety check station; 46km feeder pipeline; camps and laydown areas among others.
Chen Zhuobiao, the President China National Offshore Oil Corporation- CNOOC Uganda, said that the launching of the Pre-drilling civil works for the Kingfisher Development area is a great milestone to advance the development of the oil and gas resource in Uganda.
He said that following the official announcement of the Final investment decision-FID on February 1, 2022, the sector is transitioning into the development phase in preparation for the sustainable production of the oil resource, adding that CNOOC Uganda will ensure that all its contractors adhere to the national content regulations and that their operations are in strict compliance with the relevant laws and regulations to live up to the industry’s best practices.
Zhuobiao said the project brings them a step closer to producing the first oil, adding that the diligence, leadership and support with key stakeholders have largely contributed to the attainment of this breakthrough.
Ernest Rubondo, the Executive Director Petroleum Authority of Uganda-PAU, said that as the regulators of the country’s oil and gas sector, they are committed to working with CNOOC and other stakeholders to ensure that Uganda’s Oil industry is unique. He said this is one of the projects on, which over USD 2 billion is going to be spent.
He added that that experience from oil-producing countries across the world showed that for the oil and gas sector to spur inclusive growth, deliberate efforts have to be made to enable the benefits from the sector to reach the wider population.
Rubondo said PAU is looking forward to the development of the oil and gas sector in a way that will enable the sector to contribute to Uganda’s socio-economic transformation. Proscovia Nabbanja, the Chief Executive officer of Uganda National Oil Company-UNOC, said the launch of the Pre-Drilling civil works for the Kingfisher Development area is another significant stage in Uganda’s oil and gas sector.
She applauded the joint venture partners CNOOC Uganda limited and Total-energies E$P Uganda for all the investments made in the Kingfisher field over the years saying the investments have made the kingfisher development area become a commercially viable and attractive project.
She said UNOC is ready to cooperate and work hand in hand with the government and the oil companies to ensure that the oil sector is successful and ensure that project should support growth in the local community business.
Jim Mwine Kabeho, the director of Excel Construction company limited noted that they are very ready and have mobilized all the resources needed to kick start the pre-drilling civil works project in the Albertine that will cost USD 23.3 million.
Peter Banura, the Kikuube LC 5 Chairperson tasked CNOOC to ensure that they prioritize local content to ensure that the locals in the area benefit from the oil and gas activities taking place in their areas of jurisdiction.
Banura further tasked the government together with the oil companies to ensure that they protect the environment as the oil activities will be going on, saying protection of the environment during the production phase of oil is very crucial.
He too tasked the government to come up with a comprehensive oil spill contingency plan for the Albertine region and above all the entire country.
Stephen Asera, the MP for Buhaguzi East in Kikuube district wants local people to be included in the oil jobs. He also asked the locals to own the oil project.
CNOOC Uganda Limited, an oil and gas company announced the Final Investment Decision (FID) for the development of the Kingfisher Development Area (KFDA) and the LA 2 South on February 1, 2022.
The decision was made following the accomplishment of the Host Government Agreement (HGA) signed between the Government of Uganda and Tanzania for the EACOP project in 2021, the ESIA certificate award for the Kingfisher Project in 2020 and the passing of the East African Crude Oil Pipeline (EACOP, Special Provisions) Bill into Act of Parliament in 2021, which all paved way for commercialization of the oil and gas resource in a sustainable manner.
The FID gives a green light to the proposed construction of a $3.5 billion East African Crude oil pipeline -EACOP and other infrastructure in the Lake Albert region.
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