Mikaili Sseppuya

KAMPALA, UGANDA - A gas-powered plant is to be built at the Tullow Oil Nzizi oil field in Hoima District, in western Uganda starting this year, according to a report released last week.



“The discovery resource base is now in excess of 800 million barrels of oil and the first phase of development targeting gas to power the plant has started. The first commercial oil production is expected in 2011”, according to Tullow’s 2009 report.



The report says that following the significant exploration success in 2009 and the progress made in forming a new aligned partnership, the focus is now on delivering an accelerated development programme. The programme will boost local industries.

“Tullow is therefore working on clearly defining the phases of development with the Government of Uganda with Phase 1 already under way” the report released last week says.



It says Lake Albert Phase 1 involves the development of the Nzizi gas field to fuel a regional thermal power station and the Kasamene oil field in Block 2 for industrial consumption in Uganda.



“Tullow has embarked upon FEED studies to develop the Nzizi gas field to supply gas to a newly-built thermal power plant to be constructed in Hoima District,” the report says.



“The Nzizi gas discovery will be appraised during the second quarter of 2010 and will then be developed to supply gas to the power plant with both the field and the power plant coming onstream by the end of 2011,” the report added.



Interestingly, it explains that the power plant, 200 km west of Kampala, is being designed to accept both gas and crude to ensure long term supply.



“Detailed development planning for the Kasamene Field commenced in the second half of 2009 and FEED studies are currently under way. It is expected that a Plan of Development will be submitted to the Government of Uganda mid- 2010 for their approval and subsequent project sanction.



“Production from this field is expected to commence by the end of 2011. The oil will initially be transported by truck and later by pipeline to a central gathering and distribution hub for onward transportation to domestic and regional markets. Initial production capacity of this field development is expected to be around 10,000 bpd with the facilities capable of modular expansion, as further phases of the basin development are brought on stream” the report says.



An extended well testing programme is planned to support the development planning of the Kasamene field and subsequent fields, and to supplement the appraisal drilling planned for 2010. This programme, which is focused on gathering essential dynamic production data and testing of proposed production systems will commence in mid-2010, starting with the Kasamene field.



The crude oil produced during testing operations will be used to supply fuel to local industrial users providing the first domestically produced oil in sub-Saharan East Africa. The appraisal drilling and well testing will be complemented by in-fill 2D and 3D 2009 has been another landmark year for Tullow in Uganda.



“Two new potential partners have been identified, CNOOC and Total, and it is expected that each partner will acquire a one third interest in each of the three blocks. Presentations by all parties have recently been made to the relevant Ugandan authorities and Tullow expects the transactions to be signed in coming weeks,” it says.