The drilling works of oil for commercial production at the Kingfisher Development Area (KFDA) in the Western Region district of Kikuube have begun. This comes following the launch of the development by Ugandan President Yoweri Museveni.
The works will be carried out using the rig that was hauled in the East African country last August and assembled in November. Reportedly, the process will culminate in commercial production in late 2025 but could stretch into 2026.
Project Overview
Operated by CUL, the Kingfisher Development Area (KFDA) covers the Kingfisher field located in Kikuube District. There are plans for future tie-ins of the Mputa-Nzizi-Waraga fields in Kaiso-Tonya, Hoima District.
The project includes the development of a Central Processing Facility (CPF) with a capacity of 40,000 barrels of oil per day and 31 wells, comprising 11 injectors and 20 producers that will be drilled on 4 well pads.
In addition, Kingfisher Development Area (KFDA) includes 19 kilometers of flow lines to connect the fields to the CPF, a 46-kilometer 12-inch feeder pipeline from the CPF in Buhuka to the export hub and Refinery in Kabaale, Hoima District.
Furthermore, it will comprise the Lake Water Abstraction station and supporting infrastructure such as temporary and permanent camps, a materials yard, a jetty, and several access roads, among others.
Reported earlier
Jan 2020
Uganda to develop US $5bn oilfields
Uganda plans to develop the Kingfisher and Tilega oilfields at a cost of US $5bn in a bid to expedite the growth of its oil industry. The two oilfields are currently the subject of a tax dispute between the government and three oil companies.
According to Permanent Secretary of Energy, Robert Kasande, this amount forms part of the US $15bn to US $20bn projected to flow into the country’s developing oil industry in three to five years, including the 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 this year,” he affirmed.
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The five blocks
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.
The company indicated in its trading update that, joint venture conversations with the government of Uganda are ongoing and Tullow remains committed to reducing its equity stake in the project ahead of a final investment decision.
Feb 2022
Kingfisher Development in Good Progress
The progress of the Kingfisher Development Area (KFDA) has been revealed. The implementation phase of the project was launched on March 11 following the announcement of the final investment decisions.
Reportedly, the construction of the Drilling Camp, four well pads (1, 2, 3, and 4A), Temporary and Permanent Camp Infield Pipelines, Support Base, Feeder Pipeline, and the Central Processing Facility (CPF), will be the main works at Kingfisher Development Area.
Senior Civil Engineer at CNOOC Uganda Ltd., Engineer Haroon Nooh, explained that the project’s constructions were grouped into four packages which are, Engineering, Procurement and Constructions (PC1), Procurement and Construction 2 (EPC2), EPC 3, EPC4 and among others.
Overview and development of the Kingfisher Development Area (KFDA) packages
The civil works for the development of 3 well pads (1, 2, and 3), the construction of infield routes, and the installation of conductor pipes according to Nooh are currently in progress under the PC1. Wellpad 2 is expected to be delivered at the end of August, well pad 3 in February 2023, and well pad one will be delivered in July 2023. The overall work and the package are up 18.55% since they began installation of conductor pipes pad 2, which will be done within 12 weeks.
Contractors led by Excel Construction (U) Ltd will construct a 120-man permanent camp, a support base for storing materials for the CPF, and a safe workstation near the escarpments as part of the EPC 2 package. A CPF will be constructed under EPC3, which is a site where all of the extracted materials will be purified to separate them from water, gas, sand, and other solid materials. This process will enable the materials to be transported through the feeder pipeline to Kabaale Industrial Area, where a refinery will be constructed, and others to Tanga through the EACOP.
Also Read: Latest Developments on Nyamwamba II Hydropower Project in Kasese, Uganda
The contractor will also provide infield flows to connect inland wells, a temporary camp, and a water intake station as part of this package. According to Nooh, similar to EPC 2, work on this package is still in progress, with the detailed engineering design set to be completed in 36 months. He reckoned that other significant works are under EPC4, and also they will be constructing the KF feeder line and the High Voltage power line, which is expected to take 25 months to complete.
Other activities include the construction of floodwalls and a jetty, which will protect Wellpad 1, 2, and 3, according to him, and will be completed in 6 months after the design is completed and a call for tenders is issued; the construction of roads in the drilling camp, which is currently underway; the construction of temperature water abstraction, football pitch, and volleyball/basketball courts; as well as the design and construction of the Buhuka water project and maintenance.
The head of corporate affairs at CNOOC, Zack Lubega, said that they were optimistic that all development work would be completed by the end of 2024. The first oil will be produced in early 2025.
