The government of Uganda is planning to develop the Kingfisher and Tilega oilfields at a cost of USD five billion in a bid to expedite growth of its oil industry.
The two oilfields are currently the subject of a tax dispute between the government and three oil companies. The project cost is part of USD 15 billion to USD 20 billion investment which is projected to flow into the country’s developing oil industry in three to five years, including construction of a refinery and crude pipeline.
The funding will be used to drill over 500 wells and construct two central processing facilities and a water plant. Plans are also in the pipeline to award exploration companies five blocks by the end of 2020. The five blocks on offer are located in the Albertine Basin; namely, Block 01 (Avivi), Block 02 (Omuka), Block 03 (Kasuruban), Block 04 (Turaco) and Block 05 (Ngaji).
The bidding process will run for five months. The licensing round is scheduled to conclude by December 2020, with successful firms set to receive Petroleum Exploration Licenses.
Total, CNOOC and Tullow Oil jointly own the Kingfisher and Tilega fields and the Ugandan government is in negotiations with Tullow to reduce its stake in the projects and allow final investment decisions to be concluded.