Uganda To Start Commercial Production Of Oil In 2025 After Drilling 74 Wells
- Uganda has announced the completion of the drilling of 74 oil wells, paving the way for commercial oil production in 2025
- The country revealed it has 6.6 billion barrels of petroleum resources, with 1.5 billion recoverable; the resources will fuel its economic ambitions if commercialised
- Despite 4 billion barrels discovered in Lokichar, Kenya faces challenges in sustaining refinery operations; in 2019, Nairobi exported over 200,000 barrels of crude oil to China
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Muyela Roberto is a business journalist at TUKO.co.ke with over 9 years of experience in the digital media, offering deep insights into Kenyan and global economic trends.
Uganda has announced the completion of drilling 74 oil wells, marking a significant milestone on the path to oil production.
Future of Uganda’s petroleum reserves
Minister for Energy and Mineral Development Ruth Nankabirwa stated that the country expects to commence commercial production in 2025, with the Tilenga and Kingfisher areas being the primary production sites.
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The exploration and rig construction efforts in Uganda, led by President Yoweri Museveni, are spearheaded by TotalEnergies E&P Uganda, China National Offshore Oil Company (CNOOC) Uganda Limited, and Uganda National Oil Company.
“These efforts are crucial for Uganda's ambitions to boost oil production, drive economic growth, and generate significant national revenue. The exploration is expected to increase Uganda’s petroleum reserves and extend production beyond 25 years,” Nankabirwa noted.
According to Nankabirwa, studies indicate that Uganda has a capacity of 6.6 billion barrels of petroleum resources, of which 1.5 billion barrels are recoverable.
The Ministry of Energy is also conducting preliminary petroleum exploration studies in the Moroto-Kadam Basin to assess its oil and gas potential.
Similar surveys have begun in the Kyoga Basin, with plans to initiate studies in the Hoima Basin soon. Early results suggest the potential for commercial oil and gas in the Moroto-Kadam Basin.
If Uganda's efforts to fully commercialise oil production are successful, the project will be a significant relief for the landlocked country, which has long relied on the Port of Mombasa for its imports.
Recently, Kampala imported its first oil consignment through Mombasa and is considering Dar es Salaam as an additional route.
Oil exploration in Kenya
In Kenya, at least 86 wells have been drilled, with an estimated 4 billion barrels of crude oil reserves discovered in the Lokichar sub-basin by Tullow Plc and its partners.
In 2019, Kenya exported approximately 200,000 barrels of crude oil to a Chinese company, generating KSh 12 billion in revenue.
However, drilling and exploration activities have since slowed, with near-zero progress in the export process.
Francis Wawiye from the Ministry of Energy & Petroleum, while addressing journalists and an oil and gas conference in Nairobi in 2023, noted that while Kenya has crude deposits, the volumes may not be sufficient to sustain a refinery.
Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.
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Uganda president Yoweri Museveni, Kenya's William Ruto on the right.
Uganda begins oil drilling, hopes for production by 2025 - Energy
With 74 Oil Wells Drilled So Far, Uganda's Oil Production To Start in
