CNOOC awaits govt nod to begin oil production at Kingfisher

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The most advanced Chinese oil drilling equipment in the oil and gas industry exploration and development sector represented by the ‘Drilog and Welleader’ system and the land rig ‘LR8001’ at the Kingfisher Oil fields.

KAMPALA, Uganda — China National Offshore Oil Corporation (CNOOC) Uganda has announced that 15 oil wells at the Kingfisher field are ready for production, bringing Uganda’s first oil extraction closer to reality.

The company, which operates the Kingfisher project, says drilling is 95% complete, putting the project ahead of its original schedule. Civil works for the Central Processing Facility are also nearing completion at 93%.

“The project is running ahead of schedule, we hope we can produce the first oil as soon as possible,” said Denis Mulondo, a geologist with CNOOC Uganda. “For the drilling part, we are ready to start producing oil; we are only waiting for other players like EACOP and the Government of Uganda to give us a go ahead, most probably by early next year.”

Mulondo said the 15 completed wells are sufficient to begin production, though drilling is ongoing. The Central Processing Facility, with a capacity of 40,000 barrels per day, will process crude oil before it is transported 46 kilometers via a feeder pipeline to the export hub in Hoima. From there, it will enter the 1,443-kilometer East African Crude Oil Pipeline (EACOP) to the port of Tanga, Tanzania.

Ernest Rubondo, the executive director of the Petroleum Authority of Uganda, also confirmed the project is moving well, with oil production anticipated next year. The Kingfisher project is operated by CNOOC on behalf of the Uganda National Oil Company and TotalEnergies.

Andrew Mbigiti, a senior media officer at CNOOC Uganda, noted that a major milestone was reached recently when the company connected to the national power grid, cutting diesel use by 50%. He also added that the company has not encountered any dry wells.

While production is imminent, Mulondo said the oil in the completed wells will remain in the ground, which he described as the safest and most cost-effective storage method until the final go-ahead is given. He said President Yoweri Museveni will make the final decision on the start date.

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