Kampala – A Final Investment Decision (FID) by France’s Total Energies, China National Offshore Oil Corporation (CNOOC) and Uganda National Oil Company (UNOC) for Uganda’s oil and gas projects has been announced.
The FID is expected to see funds invested towards the development of the Kingfisher and Tilenga upstream oil projects in the Albertine Graben.
The investments will also include the construction of the East African Crude Oil Pipeline (EACOP) from Hoima to Tanga port in Tanzania.
January Makamba, the Minister of Energy says this corporation will give Uganda and Tanzania leverage in the global energy conversation
The announcement of the FID brings Uganda closer to producing its first crude oil by 2025
The oil investments are expected to total between 10 and 15 billion US Dollars, with at least 4.2 billion of the expenses going to Uganda.
While officiating at the ceremony to announce the FID held at Kololo on Tuesday, President Yoweri Museveni hailed the companies and said he was cognizant of the benefits to the economy, this decision comes with.
Uganda is expected to produce 230,000 barrels of oil per day (at peak), which is expected to boost economic growth in the country.
The country discovered crude oil reserves in 2006 but the start of commercial production has been repeatedly delayed by a lack of infrastructure and disagreements between the government and oil firms over taxes and development strategy.
