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KIU Business Desk: The Long-awaited Multi-billion Dollar Uganda Oil Project FID Signed Off 

kiu-business-desk-the-long-awaited-multi-billion-dollar-uganda-oil-project-fid-signed-off 

 

By Rogers Wanambwa 

KIU, Main Campus – The long-awaited Final Investment Decision (FID) for Uganda’s oil industry came to be a dream this week on Tuesday. The function was graced by H.E.Yoweri Kaguta Museveni, the President of Uganda, Vice President of Tanzania, Dr.Phillip Isdor Mpango, and Total Energies boss, Patrick Pouyanne. They arrived at Kololo Ceremonial Grounds in Kampala on a Tuesday morning, paving the way for the construction of the 1,146km East Africa Crude Oil Pipeline and the development of Tilenga and Kingfisher oil fields.

Uganda’s Ambassador to Tanzania, Ambrose Richard Kabonero, said the announcement of FID will unlock investments worth billions of dollars and create thousands of jobs for the people of Uganda and Tanzania.

“The expected investment in Uganda’s oil project in the next 3 to 4 years is about US$ 15 billion, with an expected investment of 3 billion USD during 2022,” said Kabonero, who has been coordinating work between the two countries on the implementation of the oil projects.

Oil companies have already submitted contracts worth 6 billion USD for over 40 work packages for the Tilenga, Kingfisher, and East African Crude Oil Pipeline (EACOP) Projects to the PAU for approval.

Rubondo also revealed that a contract for civil works and construction of well pads for the Kingfisher project and infield access roads was awarded to Excel Construction Limited, a Ugandan company.  

Additional contracts for the Kingfisher project, including drilling and well services, will be awarded in 2022.

On the progress of works for the Tilenga Project, preparation of the 700 acres of Industrial area was at 35% completion at the end of 2021 and expected to be concluded by mid-2022.

Uganda’s economy is expected to revive and grow with the upcoming production of the oil project.