Kampala, 26 September (Argus) – The government of Uganda has approved a production licence for Chinese state-owned CNOOC for the development of the Kingfisher field in the Lake Alber basin.
The development is expected to cost $2bn and produce between 30,000 b/d and 40,000 b/d, said Uganda's state minister for mineral development Simon Dujanga.
First production is expected in 2017-2018.
Total and UK-listed Tullow also aim to develop oil fields in the basin which could be exported through a pipeline to the Kenyan coast. The three companies have formed a consortium to develop the fields, an export pipeline of with a capacity of up to 300,000 b/d, and a 30,000 b/d refinery to supply domestic needs.
Oil was discovered in Uganda in 2006 but development has been held up by a series of disputes over taxes, licence rights and the construction of the refinery. The government initially argued for a much larger facility to be built in the country but eventually agreed that on the small domestic plant that could be doubled in size at a later date.
The basin is estimated to have the potential to produce at least 200,000 b/d.
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