Minister announces new start date for oil production in Uganda
Uganda’s oil production has been pushed forward to 2022 after missing the country’s target of 2011 said Energy Minister, Irene Muloni.
The delay is the result of a lack of refining facilities, as well as lacking pipeline infrastructure. To mitigate infrastructure inefficiencies, Uganda signed a deal to build and operate a 60,000 barrel per day refinery that is estimated to cost between $3 billion and $4 billion.
“We have to build a pipeline and a refinery for us to start producing oil,” the Minister said.
Once completed, the 1,443km pipeline will transport the refined oil for export at the Tanga port, in Tanzania. The 24-inch diameter pipeline, to be constructed in 2022, will have the capacity to transport 260,000 barrels of oil.
First production will come from the Kingfisher and Tilenga blocks, with the development of Tilenga led by Total. The China National Offshore Oil Corporation will be the operator for the Kingfisher area.