Unlocking $15bn Investment in Oil & Gas Sector: Final Investment Decision Announced
President Yoweri Museveni and Tanzania Vice President Phillip Mpango today witnessed the announcement of the Final Investment Decision (FID) by the chairman and chief executive of TotalEnergiesPatrick Pouyanné at Kololo Ceremonial Grounds.
This occasion means works for the construction of the 1,445km East African Crude Oil Pipeline Project (EACOP) and the development of two oil fields can now commence, unlocking investments in the range of USD15 to USD20 billion, according to Uganda Investment Authority.
Uganda seeks to build a refinery with a capacity to refine 60,000 barrels of oil per day, with most of it coming from the Tilenga, which is operated by Total and Kingfisher oil fields, which are managed by CNOOC.
Both are expected to produce 230,000 barrels per day at plateau.
Uganda’s petroleum resources remain at 6.5 billion barrels of oil, with 1.4 billion barrels of this as recoverable resources.
The Ministry of Energy and Mineral Development continues to license additional areas for petroleum exploration in the country to increase these resource volumes.
The country is currently negotiating with UNOC and Australia’s DGR Global Limited over exploration licenses for some oil fields. This is in addition to the ongoing exploration activities of Oranto Petroleum and Armour Energy in the Ngassa and Kanywataba contract areas respectively.
Uganda expects to have its first oil flowing in the first quarter of 2025.
TotalEnergies have majority stake in the crude oil pipeline at 62%, with the rest shared among Uganda National Oil Company (UNOC) and Tanzania Petroleum Development Corporation (TPDC) who have 15% each, and China’s CNOOC owns the remaining 8%.
According to Petroleum Authority Uganda Executive Director Ernest Rubondo, in the past three years, over $910 million has been invested in the oil and gas sector.
Officials say oil companies have already submitted contracts worth over $6bn for works in Tilenga, Kingfisher and EACOP.
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