Government progress towards ensuring the production of oil by the end of 2025 was announced by the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa, during a parliamentary session on October 25, 2023.
The minister reported that the government, in collaboration with its partners, is working diligently to meet the 2025 oil production goal. Nankabirwa presented an update on the status of oil and gas projects in the country to Parliament.
According to Nankabirwa, the government has successfully drilled a total of 11 oil wells. Eight of these wells are located in the Tilenga area, while the remaining three are in the Kingfisher region. These wells have the capacity to produce up to 190,000 barrels and 40,000 barrels of oil per day, respectively. In total, 457 wells and 35 well pads will be required for production.
President Yoweri Museveni officially launched the development and production wells at the Kingfisher field in Kikuube district in January 2023, while those at the Tilenga Project, situated in the Albertine Graben within the Buliisa and Nwoya districts, began operations in June 2023.
Nankabirwa also informed Parliament that construction of the Central Processing facilities at both Kingfisher and Tilenga is underway and on schedule to be completed by 2025. Currently, the Tilenga facility is 33 percent complete, and the Kingfisher facility is at 12 percent.
Regarding oil exploration, Nankabirwa stated that the Ministry is expanding its resource base by granting more licenses to companies. She mentioned the issuance of exploration licenses to various companies over different blocks.
The Minister also outlined plans to formulate a comprehensive National Petroleum Policy by the end of the Financial Year. This policy aims to provide a favorable environment for efficient exploration, development, production, and commercialization of discovered resources while acknowledging energy transition initiatives. Additionally, the government is involved in the development of a 60,000 barrels per day oil refinery in Kabaale, Hoima district.
Nankabirwa provided an update on the East African Crude Oil Pipeline (EACOP) project, stating that civil works began in August 2023, and the Resettlement Action Plan (RAP) for affected individuals in the 10 districts through which the EACOP crosses is in progress.
During the parliamentary session, concerns were raised about the slow progress in oil well construction. The Minister assured members that construction had commenced this year and that the target of 457 wells would be achieved by 2025.
Nankabirwa also attributed delays to Non-Governmental Organizations (NGOs) and Civil Society Organizations that have been campaigning against the EACOP project.
