TotalEnergies has announced its commencement of drilling wells for oil in Uganda as part of the East African Crude Oil Pipeline project.

This was revealed by the Petroleum Authority of Uganda (PAU) in a statement released on Tuesday, July 25, 2023.

PAU stated that, the massive project involves a partnership between TotalEnergies and the China National Offshore Oil Corporation (CNOOC), in which the two companies signed a $10 billion agreement in 2022 to develop Ugandan oilfields and ship the crude via a 1,445 kilometer pipeline to Tanzania’s Indian Ocean port of Tanga.

According to TotalEnergies, drilling operations started in July, with an aim of ensuring that the production process starts in 2025.

However, the drilling of development wells, according to the Petroleum Authority of Uganda (PAU), began on June 28, 2023.

In the same statement, PAU noted that, over 400 wells will be drilled and expected to produce approximately 190,000 barrels of oil per day at peak production.

Alex Nyombi stated that, three drilling rigs have been allocated for the drilling operations.

“Currently, one rig is in operation, while the other two are undergoing final tests and checks, with the third rig expected to commence operations in October 2023,” he said.

Ali Ssekatawa, the Head of Legal and Corporate Relations at PAU, said, “the rigs in Uganda are designed to minimize the environmental footprint by adding sustainable technologies and practices and ensuring responsible resource extraction for future generations.”

TotalEnergies maintains that it has provided fair compensation and will continue to respect the rights of the affected communities. The company has emphasized its commitment to minimizing the environmental footprint of the drilling operations and ensuring responsible resource extraction.

The East African Crude Oil Pipeline project is a significant development for both Uganda and Tanzania, aiming to harness the region’s oil reserves for economic growth and development.