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Home Business & Startups Company News

Uganda Nears First Oil Milestone as Kingfisher Drills 15 Wells

Kajuga Rogers Kabagambe by Kajuga Rogers Kabagambe
August 26, 2025
in Company News, Development Programs, East Africa News, Economy, News & Analysis
0
Uganda Nears First Oil Milestone as Kingfisher Drills 15 Wells

Kingfisher Oil Dril

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FAMReports News Desk | August 2025

China National Offshore Oil Corporation Uganda Limited (CNOOC) confirmed the milestone, marking significant progress toward the country’s first commercial oil output. “We have the onshore drilling operations on which we’re building 31 wells on four pads. The 31 wells will include 20 producers and 11 water injectors,” explained Dennis Mulondo, a geologist at CNOOC Uganda Limited.

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Uganda’s long-delayed oil ambitions have taken a major step forward with 15 wells now drilled at the Kingfisher oil project in Kikuube District. Officials say only two more wells are needed for initial production, though export and refinery infrastructure remain critical prerequisites.

Mulondo elaborated on the role of the water injectors, noting that “injectors pump water to push the earth toward the producers, increasing the amount of oil that can be extracted.” He also highlighted the supporting infrastructure required to handle crude oil once production begins.

“We have the lake water upstream station, drawing water to support operations and injection purposes. Flow lines connect the four pads to the Central Processing Facility (CPF). At the CPF, sand and water are removed, leaving only crude oil. The crude is then pumped through an eight-kilometre pipeline to Kabaale,” Mulondo said.

Despite this progress, actual production cannot start until export and refinery facilities are ready. “These 15 wells are sufficient for first oil. But the East African Crude Oil Pipeline (EACOP) and the refinery are not yet complete. Until they are, production cannot begin,” he said. Mulondo added that the President is particularly invested in ensuring that not all oil is exported unrefined.

Ernest Rubondo, Executive Director of the Petroleum Authority of Uganda (PAU), emphasized the significance of the project. “The Kingfisher project will have 31 wells. CNOOC Uganda Limited is progressing well. With 15 wells drilled, they are very close to being ready for oil production. The remaining wells will be drilled even after production starts,” he said.

Rubondo praised local community cooperation but warned against misinformation. “The company has worked well with the community, which continues to support the project. Challenges have mostly come from some foreign-funded civil society organizations,” he noted.

On the export front, EACOP remains the critical link to global markets. John Bosco Habumugisha, Deputy Managing Director of EACOP, provided updates on the pipeline, stressing its sustainable design. “We are building an innovative pipeline system powered entirely by green energy—Uganda will supply through UETCL and Tanzania through Tanesco. Communities are being engaged to ensure sustainable development. Completion is expected in the second half of next year, at which point Uganda will produce its first oil,” he said.


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Derrick Jonathan Mbabazi, National Content Manager for the EPC II Project, highlighted Uganda’s involvement in the oil economy. “National content ensures that Ugandan citizens, resources, and companies participate in the oil and gas industry. We have employed over 2,000 Ugandans at the CPF, including 500 from local communities, many trained and certified in trades such as welding and scaffolding,” he said.


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The Kingfisher project, part of Uganda’s broader oil ambitions, has been nearly two decades in the making. Oil was first discovered in 2006, but delays in development and infrastructure have prolonged the wait for first oil. With 15 wells completed, the nation is approaching this historic milestone.

The final stage now hinges on timely completion of the refinery and the 1,443-kilometre EACOP pipeline, which will transport Uganda’s crude oil to the Tanzanian coast for export. Once operational, the project is expected to boost the national economy, create jobs, and strengthen Uganda’s energy sector.

Experts say that the Kingfisher project demonstrates Uganda’s growing capacity to manage large-scale energy projects while integrating local workforce and sustainable practices. Officials remain cautiously optimistic that production could commence once infrastructure and logistics align.

The project is also seen as a test of Uganda’s ability to balance economic development with environmental and social responsibilities. By involving local communities, employing Ugandans, and prioritizing green energy in pipeline operations, the government and operators aim to ensure long-term benefits for the country.

For Uganda, the first oil represents not just an economic opportunity but a symbolic step toward energy independence and regional influence. With the Kingfisher wells drilled and infrastructure nearing completion, the nation stands on the cusp of entering its long-awaited oil production era.



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Tags: EACOP PipelineUganda Energy SectorUganda Oil Production
Kajuga Rogers Kabagambe

Kajuga Rogers Kabagambe

Kajuga Rogers Kabagambe is the Managing Editor of FAMReports and the CEO of FAM Media Group Ltd. He holds a Bachelor’s Degree in Journalism and Communication from Makerere University. As a staunch advocate for youth entrepreneurship and equal opportunities, he believes these are key pathways to job creation and bridging income inequality in Uganda.

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