The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | There is a new date for Uganda’s ‘First Oil’, which has now moved to 2022 from 2020, according to Energy Minister Irene Muloni.
Addressing journalists in Kampala, Muloni said the delay is because the joint venture partners Total, China National Offshore Oil Company (CNOOC) and Tullow needed to make the investment decision to develop the oil fields in Tilenga and Kingfisher blocks.
Minister Muloni told the press in an end of year briefing on Thursday that with Tullow selling stakes to Total and CNOOC, and with the deal still delaying, the final investment decision has also been delayed. Muloni says they now estimate that the final investment decision will be made in the first quarter of 2019, adding that as a consequence the ‘First Oil’ is now expected in 2022.
Uganda has made 21 oil discoveries with the joint venture partners granted production licenses for 14 fields. Muloni says the delay in the final investment decision also affects final investment decisions for the refinery and the crude oil pipeline. According to Muloni, the oil refinery is now expected to come on line in 2023.
‘First Oil refers’ to that very first barrel of crude oil that signals the start of oil production. Oil was discovered in commercial quantities in Uganda in 2006 and since then the timeline for Uganda’s First Oil has been shifting.
The first target was 2013, then 2015/16, then 2018, then 2020 and now 2022. The head of the Petroleum Authority of Uganda Ernest Rubondo says they are in place to ensure optimal management of the sector and efficient management of the costs.
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