CNOOC Uganda Limited has announced Final Investment Decision (FID) for the development of the Kingfisher Development Area (KFDA) and the LA 2 South. The decision was made following accomplishment of the Host Government Agreements (HGA) agreement signed between Government of Uganda and Tanzania for the EACOP project in 2021, ESIA certificate award for the Kingfisher Project in 2020 and passing of East African Crude Oil Pipeline (EACOP, Special Provisions) Bill into Act of Parliament in 2021, which all paved way for commercialization of the oil and gas resource in a sustainable manner.
“Achieving FID for the Kingfisher Project is a great milestone to advance the development of the oil and gas resource in Uganda. This brings us a step closer to FID expected in 2025. The diligence, leadership and support with key stakeholders have largely contributed to the attainment of this breakthrough,” stated Mr. Chen. Zhuobiao, President, CNOOC Uganda Limited.
The KFDA Project shall produce 40,000 barrels of oil per day during peak production and a Central Processing Facility shall be constructed at Buhuka Flats. Other facilities include 31 wells on four wellpads; access roads; water intake point; safety check station; 46km feeder pipeline; camps and laydown areas among others.
All the land needed for the project facilities has been acquired in line with International Best Practices. To date over 99 per cent of affected persons have been compensated and currently construction of 56 resettlement homes as in kind compensation for affected primary residents is ongoing.
CNOOC Uganda Limited has undertaken various initiatives to enhance the livelihoods of Ugandans through direct and indirect employment of the locals, stimulating local demand for goods and services by the company, its contractors and sub-contractors.
Initiatives include training of Heavy Good Vehicle drivers and welders. Livelihood restoration and impact management programs like Livestock and Agricultural Training, Financial Management Training and Business Development Support, Vocational Skills Training and Employment Program, HIV/AIDS awareness training, Road Safety Awareness Campaigns, Sanitation and Hygiene Campaigns, Cultural heritage management, support to social infrastructure such as schools, health facilities, water sources, construction of fish landing site, upgrade of the gravity water flow scheme, Sensitization on communicable and non-communicable diseases and Fisheries Development Program as well as Corporate Social Responsibility Initiatives in the areas of environment, health, education and sports have also been undertaken.
CNOOC Uganda reaffirms its commitment to the efficient and effective development of the Kingfisher Development Area in an environmentally friendly and sustainable manner.
