China National Offshore Oil Corporation (CNOOC)’s drilling launch was not only ceremonial, within two weeks the company accomplished drilling three wells and moving forward. On the other hand, civil works are ongoing at the TotalEnergies Tienga project.
CNOOC is the operator of the $ 2 billion King Fisher Development Area. Its rig LR 8001 was switched on January 24th, in the Kikuube district. The $ 6 billion Tilenga project is also on course with the building of the rig almost complete at its project area in Buliisa. These are significant milestones in the development phase.
During a #UCMPVisit, the team witnessed more activities that are ongoing. The earthworks for the Industrial areas in both King Fisher and Tilenga projects are almost complete. When completed, the sites shall be handed over to the Central Processing Facility Contractor to start operations.
The 4,000-man camp for the Tilenga project is almost ready. At King Fisher, the clearing of the site for camp construction is on course.
Waste management systems have been fully established in the oil operation areas. A contractor to handle oil and gas wastes is at work with complete waste management facilities, including laboratories and disposal sites.
The visiting team also met some Project Affected Persons (PAPs) and saw resettlement houses and livelihood restoration projects for the PAPs.
To reduce grievances between the projects and PAPs an Oil and Gas Advisory Committee comprising politicians, district leadership, and local communities was established.
Context
In Feb 2022, Joint Venture Partners: TotalEnergies, CNOOC, and Uganda National Oil Company (UNOC) announced a Final Investment Decision (FID), unlocking a $15 billion investment in the next five years.
Uganda made discoveries of oil and gas in 2006. The country then enacted enabling legislation including The Petroleum (Exploration, Development and Production Act 2013) and Petroleum (Refining, Conversion, Transmission Act 2013). The country also developed National Content Act 2020 to ensure lasting benefits long after exhausted oil and gas resources.
The upstream development involves exploration, production and decommissioning. Meaning that there shall be a refinery to add value to the crude for domestic and regional consumption. While a pipeline shall be built to ship the crude to overseas markets.