Uganda has officially began drilling for crude oil in the Kikuube and Hoima districts’ Kingfisher Oil Field (KFDA).
Several government representatives and President Yoweri Museveni will be present for the ceremonial start of drilling.
The China Offshore Oil Engineering Company and the China Petroleum and Construction Corporation’s joint venture received the KFDA.
The oil field, previously known as Exploration Area 3A, is part of the Kingfisher Field Development Area (KFDA) and is operated by Cnooc Uganda Ltd.
Energy and Minerals Minister, Ruth Nankabirwa says the launch will involve commissioning of the Kingfisher drilling rig for all 31 oil wells.
The process is expected to lead to commercial production by 2025 or 2026.
The KFDA is estimated to contain 800 million barrels of oil, with 25% of that being developed in the first phase.
This will result in a peak production of 40,000 barrels of oil per day.
The capital expenditure for the development of the KFDA is $2 billion.
