The Ministry of Energy and Mineral Development of Uganda has delayed the startup of domestic oil production by one year until 2022. The country discovered its crude reserves more than 10 years ago but the production has been repeatedly delayed by disagreements with field operators over taxes and the development process. Besides, the lack of existing transportation pipelines and refining infrastructure also played a significant role in holding up the country's projects.
Uganda is currently estimated to hold between 2.6 and 6.5 Gboe of hydrocarbon deposits in the Albertine rift basin. The French company Total is developing the Tilenga oil field and has stakes in the Kingfisher oil field operated by Chinese state-run oil producer CNOOC. Tullow Oil owns stakes in both fields.
Once produced, the domestic oil will be processed in the 60,000 bbl/d Albertine Graben refinery project (also referred to as Kabaale Phase-1, located near Hoima on the shores of lake Albert), which will be built by the Albertine Graben Refinery Consortium (AGRC, including GE's subsidiary Nuovo Pignone International, Saipem, Laitra and Yatra Ventures). A final investment decision (FID) for the project will be taken as early as September 2020 and the commissioning is slated for 2023.
Along with these projects, Uganda is also developing a 260,000 bbl/d crude oil export pipeline connecting with Tanzania, which is scheduled for completion by 2022. Total is likely to hold a majority stake the US$3.5bn project, while Tanzania expects to take a 15-25% interest.