$23 million oil project launched in the Albertine graben

KIKUUBE – China National Oil Offshore Company (CNOOC) Uganda limited has commissioned the procurement and construction of Component One (PC1) for the Kingfisher Development Project in Buhuka parish Kyangwali sub-county in Kikuube district.

The Kingfisher Development Project will be implemented in three components which include; procurement and construction component one (PC1), engineering, procurement, and construction component two (EPC2) and engineering, procurement and construction component three (EPC3). The entire project will cost $2billion and is expected to create 20,000 jobs.

Excel Construction Limited, a Ugandan company was in December 2021 contracted to implement the project and is expected to construct well pads, access roads and water intake points.

The PC1 project will last 20 months and will cost $23.3 million.

The project launch follows the announcement of the Final Investment Decision (FID) by President Museveni, early this month which was signed between the government and oil companies to kick start the production of oil and gas.

While launching the project last week, Ruth Nankabirwa, the Minister for Energy and Mineral Development said Ugandans have been waiting for such developments.

She noted that such projects will enable the government to have the first oil drop in April 2025. Nankabirwa adds that the government is committed to see that oil developments get implemented including the construction of the refinery.

She noted that though some speculators are against the construction of the refinery; Uganda needs this refinery because it will supply fuel to counties in the Great Lakes region and reduce the pressure of importing fuel.

She added that this refinery is expected to come up with many other benefits which include; jobs, industries such as still and plastic and called on the local and international investors to come up and invest in the refinery development.

She noted that oil and gas is a national resource which will benefit all Ugandans and called on the host community to strategize for the sector by engaging in production and hospitality to supply goods and services or else the opportunity will be grabbed by those who are prepared from other regions.

Proscovia Nabbanja, the UNOC Executive Director expressed her excitement saying the launch of EPC1 gives hope that the first oil drop will be out by 2025.

She challenged CNOOC and the other contractors to put special consideration on local content throughout the supply chain so that the project can contribute to the country’s target of increasing local content.

The project should not only support growth in local employment and development work force in the country, but it should also support significant growth in the local business community and help in developing sustainable domestic EPC supply chain entities for the long term.

She also asked them to consider issues of quality, health, safety and environmental protection if the developments are to cause positive impact to the Ugandans.

“The three components were intended to deliver the desired synergies in project execution and maximum benefits for joint venture partners, the contractors and the country at large, therefore UNOC as one of the joint venture partners, is very optimistic that this strategy will have a positive impact on the business environment and economic activities within the Kingfisher area and the entire country.”

The Kikuube district LCV Chairman Peter Banura, called on the government through the Petroleum Authority of Uganda (PAU) to support local governments hosting oil and gas developments to come up with oil spill contingency plans to avoid dangers that may be because of the oil development operation.

He noted that oil spills are inevitable adding that as the oil development phase kicks off, there is a need to have this plan in the area to ensure the safety of people and the environment.

He also called on contractors to put in place safeguards to ensure health and safety of workers and avoid incidences of sexual abuse and misconduct by company employees to ensure smooth implementation of the project.

Earnest Rubondo, the Executive Director Petroleum Authority of Uganda (PAU) said the Nation Oil Spill Contingency Plan was developed, and it spells out the roles of local governments. He said that soon the government will engage the leaders in the oil hosting districts to deliberate on the plan.

Chen Zhuobiao, the CNOOC President said they are committed to promoting local content by employing Ugandans through direct, indirect, and induced jobs, training of workforce and procurement of locally available goods and services.

“Priority shall be given to local suppliers on the National Suppliers Database as guided by Petroleum Authority of Uganda, enhancement of knowledge and technology transfer in Uganda,” he said.

https://thecooperator.news/will-the-parish-development-model-end-household-poverty/

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