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Uganda has been actively drilling production wells since January 2023 to prepare for oil production expected to start in 2025. Over 450 wells will be drilled across various areas, with a peak production rate of 230,000 barrels per day.

Since the projects’ debut in January 2023, production well drilling has continued, according to Thursday’s statement from Ugandan officials. This is done in order to get ready for Uganda’s anticipated start of oil production in 2025.

The 3,000-meter-deep first well for the Kingfisher field has been finished drilling, and the LR8001 rig is now at the site of the second well.

On the Jobi-5 well pad, which is a component of the Tilenga oil reserves, the initial phase of the Tilenga project will see the drilling of 12 development wells.

Over 450 wells will be drilled on 35 well-pads as part of the Uganda oil project, with a peak production rate of 230,000 barrels per day once drilling begins. This huge output will be produced across a variety of areas, including Kingfisher, Jobi Rii, Ngiri, Kasamene-Wahrindi, Gunya, Nsoga, and Kigogole.

According to Ernest Rubondo, Executive Director at the Petroleum Authority of Uganda, production well drilling is continuing according to schedule with first oil expected in 2025.

“The oil and gas activities, especially the development of infrastructure worth over US$ 15 billion in the country before commencement of production, together with the expected annual revenues in excess of US$ 1 billion, is beginning to significantly impact the country’s economy,” said Rubondo.

The nation’s oil output is anticipated to reach a maximum of 230,000 barrels per day.

According to the Petroleum Authority of Uganda’s Alex Nyombi, who oversees development and production, three rigs have been assigned to the Tilenga project’s drilling operations.

According to Nyombi, SINOPEC 1501 is currently functioning at the Jobi-5 well pad and began drilling operations on June 28, 2023.

“The third rig is being erected and is anticipated to start operations in October 2023, while the second rig is completing final tests at the Ngiri 3 well-pad before beginning drilling. The LR8001 rig has been in use for the Kingfisher Project since January 2023. Both rigs are fully automated, environmentally sustainable, and equipped with noise-canceling technology. The drilling rigs’ design demonstrates Uganda’s dedication to ethical and sustainable resource extraction.

Environment

The rigs are made to leave the smallest possible environmental footprint, ensuring a favorable effect on the ecology, and setting an example for future generations by utilizing cutting-edge technologies and environmentally responsible techniques.

By taking preemptive steps to plan the drilling operations, at least 70 wells will be completed by 2025, enabling the anticipated start of commercial production. This breakthrough will encourage investment in other economic areas over the following 25 years, potentially having a transformative effect on many Ugandans and the nation.

Uganda has established National Content Development objectives in order to guarantee that the financial gain from the project’s construction is distributed widely. By using Ugandan products and services and hiring Ugandans to do the labor, these regulations require that at least 40% of the money spent stay in the nation’s economy.

The government is also fostering connections between the new oil sector and established economic sectors including manufacturing, tourism, agriculture, and education. It is estimated that the government’s actions will benefit local businesses by a total of $8 billion over the course of the four-year building period.

In the Global Carbon Atlas, Uganda currently ranks 132nd out of 221 countries with annual emissions of only 4.9 MtCO2. In the most recent World Economic Outlook report from the International Monetary Fund, Uganda is ranked 171st for GDP per capita. France is ranked 24th, the UK is 22nd, the US is 5th, and China is 63rd.

Total Energies EP Uganda SAS (TEPU), CNOOC Uganda Limited, and the Uganda National Oil Company (UNOC) collaborate on the oil projects in Uganda. The Central Processing Facility (CPF), well pads, flowlines, lake water abstraction, and other crucial elements are among the project’s key facilities.