The launch of the first oil drilling program in Uganda is a positive step towards the country’s goal of producing oil by 2025. It holds great promise for the country’s economic growth – marking a significant milestone as it ushers job creation and technological advancement.
While there are concerns about the potential impact on the environment and local communities, the government and involved companies are working to ensure that the benefits of the oil industry are balanced with sustainable practices and protection of the environment.
The Kingfisher field is part of a $10 billion project to develop the country’s oil reserves under Lake Albert in the west and construct a pipeline to transport the crude oil to international markets through a port in Tanzania on the Indian Ocean.
The Petroleum Authority of Uganda (PAU) announced the launch of the drilling campaign, which is being operated by the state-owned China National Offshore Oil Corporation (CNOOC). At its peak, the Kingfisher field is expected to produce 40,000 barrels of oil per day.
Uganda discovered commercial oil reserves nearly 20 years ago, but production has been delayed largely due to the absence of infrastructure such as pipelines. However, the country is now excited about the launch of the drilling program.
In addition to the Kingfisher field, the Tilenga project area, located North of Lake Albert and operated by France’s Total Energies is also a commercial oil development area. CNOOC and Total Energies co-own all of Uganda’s existing oilfields along with the state-run Uganda National Oil Company (UNOC).
Read: Energy Revolution Paves Way for African Mining
At its peak, Uganda aims to produce around 230,000 barrels of crude oil per day, with reserves estimated at 6.5 billion barrels, including 1.4 billion recoverable barrels. However, the plans to extract oil from Lake Albert have faced opposition from rights activists and environmental groups, who have expressed concern over the potential harm to the region’s fragile ecosystem and the livelihoods of tens of thousands of people.
Despite these concerns, Uganda continues to move forward with its first oil drilling program, bringing the country closer to achieving its goal of oil production by 2025. This development marks a major milestone for Uganda’s petroleum industry and will have significant economic benefits for the country.
The government has also stated that a portion of the revenue generated from oil production will be invested in infrastructure development and social programs to improve the lives of the citizens.
Aside from the economic benefits, the oil industry also offers an opportunity for technological advancements and skills development in the country. This will help to enhance the capabilities of local businesses and organizations and create a more competitive and dynamic economy.
It also offers opportunities for international partnerships and collaborations. With the involvement of multinational companies like CNOOC and Total Energies, the country has a chance to tap into rich expertise and resources to maximize the potential of the oil industry.
However, the plans to tap the oil at Lake Albert, a 160-kilometre-long water bordering the Democratic Republic of Congo, have run into stout opposition from rights activists and environmental groups.
