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Pre-drilling works commence in Kingfisher Oil Development Area

Minister Ruth Nankabirwa and Cnooc president Chen Zhuobiao launch pre-drilling works in Kingfisher oil development field

Minister Ruth Nankabirwa and Cnooc president Chen Zhuobiao launch pre-drilling works in Kingfisher oil development field

Following the official announcement of the final investment decision on February 1, 2022 by the government of Uganda and the oil companies, pre-drilling civil works at the Kingfisher Oil Development Area, managed by Cnooc Uganda Limited, have commenced.

These were launched by the minister of Energy and Mineral Development Ruth Nankabirwa recently at the project site in Buhuuka village, Buseruka Subcounty in Kikuube district.

Cnooc contracted Excel Construction Limited, a Ugandan company, as the contractor to construct the oil well pads, access roads and water intake points. The contract was signed on December 29, 2021 worth $23.2 million with works expected to be completed within 20 months.

Chen Zhuobiao, the president of Cnooc Uganda Limited, said that following the announcement of the final investment decision, the sector is transitioning into the development phase in preparation for the sustainable production of these resources and all the land needed for the project facilities has been acquired with 99 per cent land acquisition for all the project required land.

“Having Excel Construction Limited as the contractor reflects Cnooc’s adherence to the national content principles and we shall continue doing so to ensure that more Ugandans have the opportunity to be involved and benefit from the oil industry,” he said.

Zhuobiao further revealed that on February 8 this year, Cnooc awarded the  Engineering, Procurement and Construction (EPC3) contracts and the integrated drilling services contracts and with these new contracts and others to come, the company expects to create more employment opportunities for Ugandans through direct, indirect and induced jobs, training of workforce and procurement of locally-available goods and services.

“Priority shall be given to the local suppliers on the national supplier database as guided by the Petroleum Authority of Uganda, enhancement of knowledge and technology transfer in Uganda,”

Ruth Nankabirwa, the minister of Energy and Mineral Development, who carried out the ground breaking ceremony, said.

“In 2013, the ministry carried out an industry baseline survey which identified 25 industries with the highest potential for Ugandans to benefit from the oil and gas sector and key among them was the civil construction.”

Nankabirwa noted that again in 2016 through the national content regulation, government ring-fenced 16 goods and services whose contracts can only be awarded to Ugandan companies and entities. Among the ring-fenced services was provision of civil works and, therefore, the award of this contract to a local company is a contribution to this policy objective.

“But you not only need to be a local company; you have to qualify and be able to prove that you can do quality work. I, therefore, urge Excel Construction Limited to deliver quality works to reaffirm the capability of Ugandan companies and give assurance to the industry to continue awarding contracts to local firms.”

Nankabirwa further urged the contractor to ensure that its subsequent procurement processes and employment incorporates the local community so that they can also benefit from this project.

Uganda is expected to see first oil in April 2025 with the Kingfisher oil development area expected to produce 40,000 barrels of oil per day during peak production.

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Comments

-2 #1 entertainment 2022-03-02 16:26
Good stuff

We pray for continued peace and stability in Uganda and the whole of Africa.
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