Chief Justice Flavian Zeija and Bank of Uganda Governor Michael Atingi-Ego have expressed satisfaction with the progress of Uganda's oil and gas projects in the Albertine region after receiving updates indicating that major infrastructure works are nearing completion and remain on course to deliver first oil before the end of the year.
The two officials led a delegation comprising members of the Judiciary, the Bank of Uganda and the Uganda Revenue Authority on an inspection tour of key oil and gas infrastructure in Hoima and Kikuube districts to assess the progress of government investments and determine whether the projects are delivering value for money.
The delegation toured several strategic facilities in the oil-rich Bunyoro sub-region, beginning with Pump Station One and the East African Crude Oil Pipeline (EACOP).
At the site, EACOP Deputy Managing Director John Bosco Habumugisha informed the delegation that construction of the pipeline has reached 91 percent completion, while Pump Station One--the central facility that will receive crude oil from the Tilenga project in Buliisa District and the Kingfisher project in Kikuube District--is now 83 percent complete.
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He said the remaining works are progressing well and are expected to be completed before the end of the year.
"We should have been at 94 percent by now, but conflicts in the Middle East affected the delivery of some cargo that was coming through Dubai, and also delayed the movement of some of our experts. More recently, the Ebola outbreak led to travel restrictions in some countries. Now that Uganda is Ebola-free, we expect work to progress smoothly, and we are committed to meeting the government's first oil target," Habumugisha said.
The delegation later visited Kabalega International Airport, where officials from SBC Uganda Limited, the contractor undertaking the project, reported that construction has reached 98 percent completion.
SBC Public Relations Officer Amos Muriisa said the major outstanding component had been the control tower, whose construction is now progressing well.
"The biggest delay was the control tower, but construction is now underway and we expect it to be completed within two weeks. By the end of August, the airport should be ready for commissioning. We are also preparing to begin construction of the passenger terminal, which was introduced following Uganda's hosting commitments for AFCON. That component is expected to be completed by the middle of next year," Muriisa said.
The delegation also inspected the Kingfisher oil field in Kikuube District, where CNOOC Vice President Wang Jufeng said the project had reached 95 percent completion, with most construction works finalized and the project now entering the commissioning phase.
"We want to assure the country that everything is on schedule and we are ready," Wang said.
Speaking after the inspections, Chief Justice Zeija said he was impressed by the scale of investment and the progress made across the projects, expressing confidence that Uganda is on course to achieve first oil.
"I visited the drilling rig and confirmed that all the wells required for first oil have already been drilled. I did not know Uganda had investments of this magnitude. We need to start telling our own success stories because the country is moving in the right direction," Zeija said.
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Bank of Uganda Governor Michael Atingi-Ego said the visit had enabled him to appreciate the scale of investments in the oil and gas sector and assess their economic significance.
"A significant amount of resources has been invested in the oil and gas sector, and as Governor of the Central Bank I wanted to see firsthand whether these investments justify the resources committed. I am very impressed with what I have seen. What is particularly encouraging is the level of local content. Most of the workforce is Ugandan, and I have been informed that there are plans to further localize the sector, which will reduce the high costs associated with expatriate labour," Atingi-Ego said.
He added that the continued progress of the projects strengthens confidence that Uganda is well positioned to begin commercial oil production within the government's planned timeline.
