Page 4 - AfrOil Week 45 2021

AfrOil COMMENTARY AfrOil

(Image: African Energy Chamber)
Ugandan oil industry

making some progress

CNOOC’s FID on the Kingfisher upstream project may have a greater positive impact

than civil society groups’ objections to draft legislation designed to support EACOP

UGANDA’S nascent oil industry has heard a is crucial for the development of the Kingfisher
mix of good and not-so-good news over the last and Tilenga oilfields.
WHAT: week. This essay will seek to assess the impact of
CNOOC will move forward On the positive side, China National Off- these two developments.
with development, and shore Oil Corp. (CNOOC) has reportedly taken
NGOs are raising ques- a final investment decision (FID) on proceeding Final investment decision
tions about a draft bill with upstream development work at the King- CNOOC’s FID came to light on November 4,
that supports EACOP . fisher oilfield in the western part of the country. when Ugandan Energy Minister Ruth Nanka-
This is good news, as it signals that Uganda is birwa revealed that the government-owned
WHY: one step closer to developing the hydrocarbon Chinese company had informed Kampala of its
The pipeline is crucial, as reserves discovered in 2006. decision to move forward with the Kingfisher
it will connect Uganda’s
upstream assets to world But on the not-so-positive side, non-gov- project.
markets. ernmental organisations (NGOs) are urging “I was with the chairman of CNOOC yester-
Ugandan lawmakers to take another look at the day in a meeting,” she said, according to a report
WHAT NEXT: proposed conditions for the construction of the from the Ugandan daily Business Focus. “They
Calls for revising the bill East Africa Crude Oil Pipeline (EACOP). This have delivered a letter in writing, [and] the prob-
have the potential to slow is not good news, as it has the potential to slow lem has been sorted out. They have signed the
development. the pace of work on the pipeline project, which agreement.”

P4 www. NEWSBASE .com Week 45 10•November•2021