Kingfisher to lead Lake Albert and refinery projects
After resolving tax and refinery disagreements between Tullow Oil plc (Tullow) from UK, Total from France, the China National Offshore Oil Corporation (CNOOC) from China and the Uganda Government, the Kingfisher project is ready to take off.
The Kingfisher project is to develop the previously called Block-3A located in the northwest of Uganda along the shores of Lake Albert.
Tullow took first interests in Uganda in 2004 and performed the Kingfisher-1 discovery in the Block-3A in 2006.
Then Tullow acquired 100% interests of the Block-2 in 2007 and of the Block-1 in 2010.
Along this period of exploration, the estimation of the recoverable reserves were continuously revised upward to actually exceed 2 billion barrels of oil equivalent (boe) concentrating approximately 60% of all the Uganda reserves.
The development of these Blocks in the Albertine Rift Basin may require more than $15 billion capital expenditure on the top of which should be added all the costs of infrastructures to export and/or transport the oil and gas from this far remote area.
In respect with the size and reserves of the three blocks the development capital expenditure of the three blocks should be split:
– Block-1 $7 billion
– Block-2 $4 billion
– Block-3A $4 billion
Among these fields, Kingfisher (Block-3A) should be the first block to be developed under the lead of CNOOC.
Petrofac completed Kingfisher pre-FEED for CNOOC
– Saipem from Italy
– Wood Group from UK
– WorleyParsons from Australia
– Well pad design
– Process scheme and production
– Water injection
– Water station
– Tanks farm
– Trucks loading facilities
– Power generation
The central processing facility should be located at Buhuka.
In a first phase, this central processing facility should have a capacity of 20,000 barrels per day (b/d) that should be expanded to 40,000 b/d in a second phase.
In this first phase the crude oil will be exported through 85 kilometers pipeline to a greenfield refinery to be located in Hoima.
This refinery is subject to intensive discussions between Tullow, Total, CNOOC and Uganda Government as the companies would like to size it just to meet the domestic market while the Government aims at favoring the transformation in Uganda to export higher added value with refined products.
For instance they compromised on a 30,000 b/d capacity that should be expanded in the future to 60,000 b/d in respect with the domestic market demand.
– 250 kilometers to Jinja
– To Tanzania coast in turning around the Great Lakes
– To Mombasa or Lamu on the Kenya coast