[ad_1]
Uganda began drilling its first oil well on Tuesday. This is an important milestone as the country races to reach its first oil production target in 2025.
President Yoweri Museveni cut the ribbon at a site operated by China National Offshore Oil Company (CNOOC) near Lake Albert in Kikube district.
The field, known as Kingfisher, is expected to produce 40,000 barrels of oil per day at its peak, according to Uganda’s oil industry regulator.
The development comes 17 years after commercial oil deposits were discovered in the East African country.
France’s Total, the operator of the second project, known as Tyrenga, is expected to begin drilling in March.
Uganda last week issued a permit to build a $3.5 billion pipeline set to bring crude oil from the country to international markets.
Last year, oil majors signed a $10 billion contract to develop Uganda’s oil fields and build pipelines.
At its peak, Uganda is expected to produce about 230,000 barrels of crude oil per day.
Uganda has an estimated 6.5 billion barrels of crude oil reserves, of which approximately 1.4 billion barrels are believed to be recoverable.
[ad_2]
Source link
