The construction of Uganda’s Kingfisher crude oil refinery facility reached more than 99 percent completion, marking a major milestone in the country’s transition towards commercial oil production, according to Uganda’s Ministry of Energy and Mineral development.
Uganda is set to refine a 60,000-barrel-of-oil-per-day at Kabaale, Buseruka Sub-County in Hoima District when the facility becomes operational next year.
Alpha MBM Investments, an investment firm from the United Arab Emirates (UAE) and led by Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai royal family is the lead partner in the oil refinery project.
After visiting the facility, Uganda’s President Yoweri Museveni said his country would save substantially by refining some of its crude domestically rather than transporting it to the Tanzanian coast.
His remarks came when he unveiled “Pearl Sweer” as the official name of Uganda’s crude oil, ahead of its anticipated first oil production.
“When we pump our crude to Tanga, we pay $12.77 per barrel just for transport. When we refine our oil here, we don’t pay that money. We shall no longer spend $2 billion importing petroleum,” he said.
The ministry said the completion of facilities at the CNOOC-operated Kingfisher oil field had reached 99.4 percent, with 22 wells drilled, representing 116 percent of the drilling requirement for first oil.
At the Total Energies-operated Tilenga oil field, more than 210 wells had been drilled by July, exceeding the minimum requirement for first oil, according to the ministry.
Together, the Tilenga and Kingfisher oil projects are expected to produce about 230,000 barrels of oil per day at peak production
“Our refinery will be one of the most profitable because, first of all, it’s far from the ocean and it does not have the transportation cost which imported ail nes. When we refine our oil here, you don’t pay transit charges,” he added.
MG/as/APA