NAIROBI, Kenya–– China National Offshore Oil Corporation (CNOOC) announced that it will reach a Final Investment Decision (FID) in Uganda’s oil sector by mid this year.
The vice president of CNOOC Uganda Limited, Cui Yujun, told reporters on Friday that they are in the process of ensuring that the FID is reached.
Oil analysts say the 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 reached, contracts will be awarded to a service provider and the first oil out of the ground will be in 36 months.
He said CNOOC wants to acquire 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 anticipates starting commercial production of oil by 2022. The country will build a crude oil pipeline to the Tanzania seaport of Tanga and a refinery in the oil wells.