• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Does Toyota Know Something That We Don’t?
  • 4 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 1 day World could get rid of Putin and Russia but nobody is bold enough
  • 4 hours America should go after China but it should be done in a wise way.
  • 4 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 3 days China is using Chinese Names of Cities on their Border with Russia.
  • 4 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 3 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 4 days Putin and Xi Bet on the Global South
  • 4 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 5 days United States LNG Exports Reach Third Place
  • 5 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine

Breaking News:

Chicago Files Suit Against Big Oil

Uganda Starts Oil Drilling On First Commercial Project

Uganda has commenced drilling operations on its first commercially viable oil operation, a Uganda Ministry of Energy and Mineral Development spokesperson said on Tuesday.

The East African country said it had commissioned the first of four planned rigs in the discovery, and started drilling the country’s very first commercial well in hopes of reaching first production by 2025.

The Kingfisher oilfield in the Kikuube district is a CNOOC-operated field, but co-owned with TotalEnergies and Uganda’s state run oil company, UNOC. The project has suffered numerous delays after Uganda discovered the reserves almost 20 years ago. But a lack of pipeline infrastructure in the country has, until now, proved to be an insurmountable hurdle.

The head of the state-run petroleum sector regulator Petroleum Authority of Uganda, Ernest Rubondo, described the progress on the fields as a “milestone in the journey toward the production of first oil in Uganda.”

Breakeven costs are expected to be $22 per barrel, with peak production expected at about 230,000 barrels per day.

Construction will also start this year on the nearly 900-mile East Africa Crude Oil Pipeline, also planned by CNOOC and TotalEnergies, which has been described as the world’s longest heated oil pipeline. It, too, should be complete by 2025. Total holds a 62% stake in the pipeline project, with UNOC and CNOOC carrying 15% each.

The project has received pushback from EU’s parliament last year, which called for a maximum pressure campaign against the project on Ugandan authorities “to protect the environment and to put an end to the extractive activities in protected and sensitive ecosystems, including the shores of Lake Albert.”

Uganda is also looking to develop its refinery business, with a 60,000 bpd refinery expected to be built in Uganda’s mid-west, although has suffered numerous delays as well.

ADVERTISEMENT

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News