Hon. Ruth Nankabirwa, Minister of Energy and Mineral Development, Uganda, has launched the start of pre-drilling civil works at the Kingfisher Oil Development Area, one of the first major upstream oil projects in Uganda. The launch follows the final investment decision made by the government and participating oil companies in February 2022.
The works include the construction of well pads, access roads and water intake points by Ugandan firm Excel Construction as part of a $23.2 million contract. These works are expected to be completed within the next 20 months. Ugandan construction company Excel Construction Limited has been awarded the contract.
Chen Zhuobiao, the president of Cnooc Uganda Limited, stated: “Having Excel Construction Limited as the contractor reflects Cnooc’s adherence to the national content principles and we shall continue doing so to ensure that more Ugandans have the opportunity to be involved and benefit from the oil industry.”
The entire Kingfisher Oil Development Area will comprise four well pads, 20 production wells and 11 water injection wells to produce 40,000 barrels of oil per day at peak once the project is operational in April, 2025. The project will span across a 344 km² oil field discovered in 2006.
The project will boost Uganda’s oil production capacity and help meet domestic, regional and global energy demands whilst ensuring economic growth and job creation.
Contracts for land acquisition required for the project have been signed together with deals for engineering, procurement, construction and the integrated drilling services.
Up to 1.4 billion of Uganda’s 6.5 billion barrels of proven oil reserves are estimated to be economically recoverable.