CNOOC says Lake Albert FID negotiations are yet to be finalized. CNOOC says negotiations for Lake Albert’s FID are yet to be finalized. The Lake Albert oil project may not receive a final investment decision (FID) from China National Offshore Oil Corporation soon as anticipated.
While its joint Venture Partner, Totalenergies is developing the site for the Tilenga project, CNOOC has not awarded any contract for similar work.
A source close to the company and the Energy Ministry told our reporter that the Chinese company is still ‘foot dragging’ as it asks the government of Uganda to full fill certain conditions for FID to be announced.
The source indicates that one of the conditions had been the demand that the government puts up a high voltage power line to the areas where oil and gas are to be extracted and refined.
The government complied and has since put up a 220-kilo Volt power line from Nkenda in Kasese District, through Fort Portal, in Kabarole District ending at Kabaale, in Buseruka sub-county, in Hoima District.
When hosting Parliament of Uganda Budget and Natural resources committee members at the Kingfisher project last week, CNOOC Uganda’s Vice President, Cui Yujun, said the company is ready to deliver the project at the same time with Totalenergies’ Tilenga project located in Bulisa district.
Total energies plan first oil by 2025. He was not categorical on when the company will announce the Final Investment Decision (FID) for the Kingfisher oil development project.
Speaking at the meeting, State Minister For Minerals, Peter Lokeris said the government had fulfilled most of what it had promised to do.
He urged CNOOC and the Joint Venture partners to announce the FIDS so that work on the projects commences as planned. A final investment decision on Kingfisher development will allow CNOOC to award $460 million worth of contracts to Chinese and Ugandan players waiting to cash for construction and logistics supply among others.
Yujun declined to be interviewed about FID saying he had no powers to comment or make any pronouncement unless he is cleared by the headquarters in Beijing.
The kingfisher project is expected to produce up to 40,000 barrels of crude oil per day. There are plans to construct a Central Processing facility from Buhuka on Lake Albert to Kabale where the Refinery will be located.
Also in the plan are four well pads holding 31 production and water injection wells, jetty, flow lines, and airstrip. Otuke Member of Parliament who was part of the MPS that visited the Kingfisher project camp Kikube district told us that he was not happy with the pace of work by CNOOC.
Omara was part of the new legislators invited by the Ministry of energy and the Petroleum Authority of Uganda for a tour of oil and gas projects in Bunyoro’s Albertine Graben.
CNOOC International is one of the largest oil and gas companies in Uganda’s energy sector with interests in each of the Exploration Areas (EA) EA1/1A, EA2, and Kingfisher.