The China National Offshore Oil Corporation (CNOOC) has begun drilling of Kingfisher 4 pre-production well in Hoima district as the company prepares for commercial production in Uganda.
The drilling of the well is expected to better offer a clearer picture on the oil reserves in the Albertine region as the well will be the first ‘highly deviated and extended well.’
Quoting CNOOC’s public relations supervisor Aminah Bukenya the Nation Media Group says the company will ensure that drilling in a manner that respects the approved Environment and Social Impact Assessment recommendations.
CNOOC which received Uganda’s first ever oil production license in September 2013 is expected to invest over 40 development wells 27 of which will be producers and 13 will be for injection.
The Kingfisher field is estimated to hold over 630 million barrels of oil, 190 million barrels of which is recoverable to produce between 30, 000 to 40,000 barrels of oil per day.
On top of the wells CNOOC also expects to construct a 50 kilometer heated pipeline from the Kingfisher field to the planned oil refinery in Kabale.
The Commissioner for Petroleum Exploration and Production Department Ernest Rubondo is on record saying that the Kingfisher field is expected take four years before production can commence.
According to Petroleum Exploration and Production Department Uganda has drilled 114 wells to date 84 of which are appraisal wells.
Uganda estimates its petroleum resources to be 6.5 billion barrels of oil up from 3.5 billion barrels that was estimated in August 2012.