In a recent interview, Proscovia Nabbanja, the CEO of Uganda National Oil Co, confirmed that Uganda’s Tilenga and Kingfisher oil projects, along with the oil pipeline designed to transport their products to Tanzania for export, are proceeding as planned and are expected to commence production by 2025.
Nabbanja stated, “Tilenga is still on track, and we’ve observed the arrival of three drilling kits in the country. Similarly, Kingfisher is also progressing well, with three wells already drilled, and four wells for Tilenga.”
Additionally, the East African Crude Oil Pipeline (EACOP), stretching over 1,445 kilometers (898 miles), is set to become operational in 2025. This pipeline will facilitate the transportation of crude oil from Tilenga and Kingfisher. The EACOP is a joint venture involving the governments of Uganda and Tanzania, as well as TotalEnergies from France, CNOOC from China, and Tanzania Petroleum Development Corp (TPDC).
Uganda is currently engaged in advanced discussions with the Chinese export credit agency SINOSURE to secure credit for the project. The overall project cost, including credit expenses, is estimated at $5 billion, with 40% of the funds to be sourced through debt financing, and the remaining 60% through equity investments, according to a high-ranking Ugandan official’s statement made last week.
Nabbanja acknowledged that climate concerns have reduced the pool of available financing for oil and gas projects. Nevertheless, she expressed confidence in the project’s ability to secure the necessary funding from various sources.
It’s worth noting that in June, five activist groups filed a second lawsuit against TotalEnergies in a Paris civil court, accusing the oil company of failing to adequately protect people and the environment in relation to the Tilenga and EACOP projects. Nabbanja refrained from commenting on the lawsuit but commended TotalEnergies as a responsible operator.
She also highlighted that environmental considerations have been integral to the planning process, and all partners involved are aligned with the project’s goals. Additionally, she emphasized the positive impact the projects have had on local communities, even before the commencement of oil production.