Minister Nankabirwa Urges Patience Amidst Oil Progress Demands, Confirms Key Milestones Achieved In Uganda’s Oil Sector

Faced with pressure over demands for oil progress, Energy Minister Ruth Nankabirwa has asked Ugandans to be patient as government completes processes to have oil by 2025.

Uganda’s oil and gas sector is projected to transform the country’s economic landcape, with significant investments and strategic partnerships poised to drive growth, create jobs, and generate revenue.

Dr. Ruth Nankabirwa, Minister for Energy and Mineral Development, while briefing journalists on the sector’s progress the Tilenga and Kingfisher development areas are buzzing with activity, with TotalEnergies, CNOOC, and UNOC working tirelessly to bring these projects to life.

“The Tilenga project has completed 63 wells, with 426 planned, while the Kingfisher project has begun drilling production wells, with nine successfully completed so far with Civil works at the Tilenga Industrial Area at 99.7% complete, with the construction of the Central Processing Facility progressing well, “she said.

“The Tilenga Project spanning both the North and South of the Nile in Nwoya and Buliisa Districts, is making remarkable progress.”Nankabirwa added.

She further said drilling activities have so far focused on six (6) of the thirty-one (31) well pads that will host 426 producer and injector wells for the Tilenga project. The well pads are Jobi-Rii 05 & 04, Ngiri 03 & 01, and Gunya 01 & 04. All three rigs designated for drilling are operational, and a total of 63 wells have been drilled as of August 16, 2024. Currently, seven well pads are over 85% complete and ready to receive a rig,” she noted.

According to the Minister the East African Crude Oil Pipeline (EACOP) has also made significant progress, with civil works commencing at the Main Camps and Pipe Yards in Hoima and Sembabule districts. The Uganda Refinery Project negotiations are ongoing, with the aim of boosting oil production, driving economic growth, and generating national revenue.

“The Engineering, Procurement, Construction Management and Commissioning (EPCMC) activities for the EACOP project are ongoing in London, and Dar es Salaam. Worley is undertaking this work with its subcontractors – ICS Engineering in Uganda and Norplan in Tanzania. The overall progress of the EPCMC activities was at 39.2%; the engineering phase was at 81.1%, procurement at 54.5%, and construction and commissioning at 15.4%. Detailed engineering, being carried out by Worley, was at 89.1%, surpassing the planned 88.3%.”she explained.

She explained that the EACOP project spans approximately 2,740 acres in Uganda, affecting 3,660 individuals, with 177 requiring resettlement housing.

“All resettlement houses have been constructed and handed over and so far, 95% of affected persons have received compensation, and 97% have signed compensation agreements, with remaining payments ongoing. However, there are 112 cases under consideration for compulsory land acquisition due to issues such as untraceable individuals, landowner disputes, refusal of compensation offers, and lack of legal title, “she stressed.

The Minister noted that Kabalega Industrial Park has registered key milestones, with the airport expected to be ready by the third quarter of 2025. Contracts valued at US$ 5 billion have been awarded for the Tilenga, Kingfisher, and EACOP projects, with US$ 2 billion allocated to Ugandan companies.

She revealed that the sector has directly employed 14,451 people, with 13,048 being Ugandans (90%). Local content and community employment have been prioritized, with 92% of the Licensee’s Contractors and their sub-contractors being Ugandans.