The commissioning of the first oil rig to begin drilling into the ground to reach the oil reservoirs is underway at Buhuka village, Kyangwali sub-county in Kikuube district. 

Uganda National Oil Company chief executive officer Proscovia Nabbanja says the commissioning is one of the key processes leading to the production of oil expected in the middle of 2025.

Energy minister Ruth Nankabirwa (Second left), security minister Jim Muhwezi (Second Right) and Dr Monica Musenero (First Right), the minister for science and technology attending the oil rig launch event. Looking is Kiryowa Kiwanuka (First Left).

 “We are commissioning the first rig that will begin to drill oils and spudding. There is no oil coming out today. When you drill oil wells you start connecting pipelines to pump out oil and prepare the volumes,” Nabbanja said this afternoon. 

Worth the wait

“This is the start of the drilling of one well among many others. Other facilities are being built. We hope [that] by 2025, all the facilities will be ready to produce oil. There has been fatigue from waiting for oil, but we had to prepare the legal framework and set up the institutions to attract investors and financing,” Nabbanja said.

 Spudding is the commencement of drilling of oil wells where the drill stream consisting of a drill bit, drill collars, drill pipe and kelly is assembled and lowered into a conductor pipe. 

CNOOC Uganda is the main operator of the King Fisher oil fields where 31 oil wells are expected to be drilled over the next two to three years. The area expects to produce 40,000 barrels of oil per day at peak production. 

The process 

East African Crude Oil Pipeline (EACOP) Ltd managing director Martin Tiffen said from the Kingfisher oil fields that the oil will be transported through the feeder pipelines to a central processing facility that is being built in the area.  

Thereafter, the oil will be transported from the central processing facility, through pipelines of 150km to the Kabaale Industrial Park in Hoima district. 

At the park, an oil refinery is to be built to process 60,000 barrels of oil per day. From the industrial park, much of the crude oil: 220,000 barrels of oil per day, will be transported through EACOP to Tanga Port in Tanzania for exports. 

The crude oil pipeline and refinery are expected to be commissioned in 2025. 

The starting point of the crude oil pipeline and the first oil pump station is located at the Kabaale Industrial Park. 

Tiffen said the company is set to receive the licence to construct the EACOP, approved by the energy ministry.

“This [licence] marks another step forward for EACOP as it allows the commencement of our construction activities in Uganda upon completion of the ongoing land acquisition process,” he said.  

Regulations bearing fruit

Job Kahigwa, the managing director ROHI Construction Ltd, a local ISO-certified oil and gas contractor operating over 50 heavy construction equipment in Kingfisher, said they have benefitted from the local content policies and regulations as they are currently the first subcontractor for the Kingfisher Central Processing Facility under CCJV, the main CNOOC contractor. 

“The importance of today’s celebration is witnessing the birth of twins: The spudding of oil wells and the ‘spudding’ of local content participation. It is quite unique and unusual to have local contractors participating right at the start of the development of the oil and gas sector. This has happened with the support of the Government, through the good National Content Policies and Regulations,” Kahigwa said.