Chinese oil firm aims for Final Investment Decision in Uganda's oil sector mid 2019

Source: Xinhua| 2019-03-02 20:22:34|Editor: Li Xia
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KAMPALA, March 2 (Xinhua) -- China National Offshore Oil Corporation has said it seeks to reach the Final Investment Decision (FID) in Uganda's oil sector by mid this year.

Cui Yujun, vice president of CNOOC Uganda Limited told reporters late on Friday that they are in the process of ensuring that the FID is reached. FID is the detailed plan which an oil company will follow to develop an oil field.

"A lot of work is being undertaken both in Uganda and at headquarter in Beijing to ensure we can achieve this. We are trying to get first oil as soon as possible. We are working with the government side," Cui said.

Cui said once the FID is concluded, contracts will be awarded to a service provider and the first oil out of the ground will be in 36 months.

He said CNOOC is interested in acquiring a bigger stake in Uganda's oil sector.

CNOOC, Total and Tullow have an equal stake in Uganda's so far discovered oil wells in the Albertine Graben, in the western part of the country.

Uganda expects to start commercial production of oil by 2022. The country will build a crude oil pipeline to the Tanzania seaport of Tanga and also a refinery in the oil wells.

Ministry of energy and mineral development figures show that Uganda has so far discovered over 6.5 billion barrels of oil.