This marks the transition of Uganda’s oil and gas industry from exploration and appraisal and production to development of the petroleum value chain and progressing towards commercial oil and gas production.
Announcing the deal to the media Thursday, Peter Lokeris, the state minister for minerals, said the development of the field will cost over $2b.
The money to be spent in a four-year period will cover the project’s engineering, procurement and construction contract, construction of access roads, airstrips, permanent camps, pipelines and development of wells.
“The field will be developed to produce between 30,000 and 40,000 barrels of oil per day,” he said.
The minister said the production of the Kingfisher field will also lead to production of associated gas, which will be used to generate electricity for operating the facilities.
CNOOC Uganda president Jin Weigen pledged to partner with local entrepreneurs and intensify the firm’s social responsibility to create value for all stakeholders.
*Ibrahim Kasita, The New Vision