Uganda Hits Oil Paydirt: Kingfisher Drilling Confirms Projected Reserves, Cabinet Told

LCC TV NEWS

KAMPALA – Uganda's long-awaited oil dream has moved from geological theory to hard reality, with the Petroleum Authority of Uganda (PAU) formally assuring Cabinet that drilling at the Kingfisher field in Kikuube District has successfully hit the projected oil reserves underground.

The confirmation, delivered during a high-level Cabinet briefing, marks a watershed moment for the East African nation as it barrels toward first oil production, now firmly in sight for mid-to-late 2026.

Drilling Exceeds Targets

In a development that has energized government technocrats, the drilling campaign at the Kingfisher Development Area has already surpassed its initial requirements. According to PAU officials, 22 wells are now ready for production – three more than the 19 needed to kickstart operations at the field operated by CNOOC Uganda Limited.

"We have surpassed the number of wells required for the start of production," Ms Gloria Sebikari, Manager of Corporate Affairs at PAU, confirmed to journalists following the Cabinet briefing.

The Kingfisher field, discovered in 2006, holds an estimated 560 million barrels of oil in place, with recoverable reserves projected at approximately 190 million barrels. Drilling crews using the specialised LR8001 rig have punched through depths exceeding 4,200 metres, validating the geological models that underpinned the 2022 Final Investment Decision.

Infrastructure Nears Completion

The drilling milestone comes as supporting infrastructure races toward completion:

• Central Processing Facility: Now over 95% complete – a "mini refinery" that will separate crude from water and gas

• Feeder Pipeline: 99.4% finished, connecting Kingfisher to the Hoima export hub

• Waste Management: A 200-acre facility atop the Lake Albert escarpment is operational, treating drilling waste

The complete field development plan envisages 31 wells in total – 20 producers to pump crude to the surface and 11 injectors to maintain reservoir pressure through water injection.

Production Timeline Firms Up

With technical works expected to be finalised by July 2026, first oil delivery to the Tanzanian coast via the East African Crude Oil Pipeline (EACOP) will take approximately three months, positioning Uganda to begin receiving oil revenues during the 2026-2027 fiscal year.

EACOP, the 1,443-kilometre artery that will transport crude from western Uganda to the Port of Tanga in Tanzania, stands at 85% completion, with 1,492 kilometres of pipe already welded and 916 kilometres buried underground.

At peak production, Kingfisher will contribute 40,000 barrels per day, complementing the neighbouring Tilenga project's 190,000 barrels per day – a combined output of 230,000 barrels daily.

Beyond Crude: LPG Production on the Horizon

In a move to diversify output, CNOOC has received a licence to produce Liquefied Petroleum Gas (LPG) at Kingfisher, targeting an annual capacity of 20,000 tonnes from an estimated 500 billion cubic feet of gas reserves.

Environmental Safeguards in Place

Addressing environmental concerns, PAU officials emphasised that the National Environment Management Authority (NEMA) is working alongside the Authority to ensure compliance with international environmental standards, particularly given the Lake Albert region's ecological sensitivity.

A Nation Transformed

The Cabinet assurance effectively closes a chapter of exploration uncertainty that has spanned two decades. With approximately US$7.5 billion in foreign direct investment already attracted to the sector, Uganda is positioning itself as East Africa's newest oil powerhouse – a status that promises to reshape the nation's economic trajectory for generations to come.

For now, in the rolling hills of Kikuube, the rigs keep turning – and beneath them, the oil is flowing exactly where the models said it would.

LCC TV NEWS