The Petroleum Authority of Uganda (PAU) has halted oil drilling activity by China National Offshore Oil Corporation (CNOOC) Uganda Ltd over safety concerns following a fatal incident at the Kingfisher oil field.  

The Kingfisher oil field is operated by CNOOC, as part of a joint deal with French oil giant TotalEnergies. Another oil field, Tilenga, is operated by TotalEnergies.  

Friday’s motor accident claimed the life of a security guard at the gate of one of the contractor's camps in Buhuka, Kyangwali sub-county in Kikuube District. 

It is reported that the unidentified security guard was crushed by the truck when he opened the gate to grant it access after searching it. 

The move to suspend operations was communicated by PAU executive director, Ernest Rubondo, in a letter dated October 6, 2023, addressed to the CNOOC Uganda Ltd president. 

“This regrettable incident follows several safety incidents that this Authority has previously brought to the attention of CNOOC Uganda Ltd. This trend is unacceptable as it compromises the safety of personnel and damages the reputation of the sector,” Rubondo said in the letter dated October 6, 2023.  

Aminah Bukyenya, PRO CNOOC Uganda during a tour visit (File Photo)

“The purpose of this letter is therefore to direct that in accordance with section 177 of the Petroleum (Exploration, Development and Production Act 2013), CNOOC Uganda Ltd halts all KingFisher field operations from midnight on Saturday 7th October 2023 until further notice. With the exception of activities required to maintain safety and security,” part of the letter read.  

Rubondo said that a meeting to review this regrettable incident and guide on the way forward was scheduled to take place Sunday, October 8, from 3:00 pm via Zoom.  

Safety 

Gloria Ssebikari, the manager of corporate affairs and public relations at PAU, said that in oil and gas, every life matters and in accordance with the Petroleum Act 2013, they had to direct CNOOC Uganda to halt field operations with the exception of activities required to maintain safety and security. 

She said the suspension is not likely to take long therefore it will not affect the time expected to see the first oil flow in 2025. 

“We shall issue more information and we don't expect the suspension to be on for long time so activities shall go on as long as they don't compromise the safety and security," Gloria Ssebikari said. 

Amina Nabukenya, the manager of corporate affairs and public relations with CNOOC Uganda told New Vision that meetings with relevant authorities are going on and promised to avail information anytime. 

Progress 

The Kingfisher oilfield is expected to produce 40,000 barrels each day when production is at its peak, while Tilenga is expected to produce 190,000 barrels. Both form a key part of a major national project expected to be completed within two years.  

Overall progress works at Kingfisher Oil Development Field stands at 53%. 

Uganda is estimated to have recoverable oil reserves of about 1.4 bn barrels as more exploration takes place. Drilling began in January 2023, the project is expected to be completed within two years in time for the first oil barrel to be produced.  

Uganda targets to begin producing oil by 2025. Over $6.9b worth of contracts have being awarded and $1.8b of those will go to local companies.  

Two projects will produce the crude oil project: the Kingfisher project and the Tilenga project  

The oil will be commercialized through two other projects, the East African Crude Oil Pipeline, which will run from here, Hoima, to Tanzania to export crude oil, and then the Uganda refinery project, which will be used to process our crude oil into petroleum products for use.  

Construction work on the 1,443-kilometer, $2.5b East African Crude Oil Pipeline (EACOP) is expected to begin this year.  

It will be the world’s longest heated oil pipeline, transporting crude from fields near Lake Albert in western Uganda to Tanzania’s Indian Ocean port of Tanga.  

Some oil wells are to be drilled within Uganda’s Murchison Falls National Park using hi-tech pipes going underground without disturbing the top surface area.  

The pipeline would then pass through seven forest reserves and two game parks, running alongside Lake Victoria.  

There are assurances from TotalEnergies that the pipeline’s state-of-the-art design will ensure the safety of the environment.