Excel Construction to reap US$23.2m from oil deal

Kingfisher project is expected to produce at least 40,000 barrels of oil per day in the initial stages

Kampala, Uganda | ISAAC KHISA | A local construction firm, Excel will earn US$23.2 million in building well pads, 2.5km fence, access roads and water intake points in the Kingfisher oil development project under CNOOC Uganda on the shores of Lake Albert.

The firm, which commenced work on Feb.11 is expected to deliver the assignment in a 20 months’ period.

Chen Zhuobiao, the president of CNOOC Uganda Limited said, the selection of Excel Construction Limited as the contractor reflects their adherence to the national content principles that shall be exhibited throughout the development stages to ensure that the local population benefits from the oil industry.

“We shall…ensure that more Ugandans have opportunities to be involved to and benefit from the oil industry,” he said during the ground breaking ceremony at Kingfisher development project in Kikuube District.

Excel Construction Ltd Director, Jimmy Kabeho, said the firm is currently engaged in the construction of the staff camp as most of the equipment – trucks and excavators –are already on the site.

He said, the firm looks forward to work with both small and big firms on condition that they will deliver quality work.

“We also plan to work with the local people and in the event that they unskilled and willing to learn, we shall train them so that they can benefit from this project,” he said.

“We would like to thank CNOOC Uganda for trusting us with this project and also the consultant who will supervise the works… We were here in 2008 with Heritage Oil and so we know where we are coming from and where we are going. We are sure, we are the right team.”

Energy Minister, Ruth Nankabirwa said, Ugandans should now cease opportunities in the ongoing oil and gas development projects.

“It is time that our people can now position themselves to reap from this project,” she said that that the government has engaged in enterprise development and training programs for capacity development and regular supplier development engagements, support to higher institutions of learning to support local content initiatives.

She revealed that the Kingfisher Development projects is expected to produce at least 40,000barrels of oil per day in the initial stages.

The oil companies – CNOOC Uganda a Total Energies – announced their decision to invest in the country’s oil and gas projects early this month, paving way for the major construction projects.

More than US$15billion is expected to be injected into the project which is now seen as a game changer to the economy.

Uganda discovered oil deposits estimated to be 1bn recoverable barrels in 2006 but until recently stumbled over disagreements between the government and oil companies.

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