China National Offshore Oil Corporation (CNOOC) has finally announced that it is ready to develop the Kingfisher oil well in what is technically called the Final Investment Decision (FID).

The announcement was made by the president of CNOOC Uganda Ltd, Chen Zhuobiao, to the Executive Director of Petroleum Authority Uganda (PAU), Mr Ernest Rubondo, on Wednesday, November 3, 2021.

The FID comes after the Chinese oil company fulfilled the various requirements such as appropriate environment and land authorisations, financing arrangements and completion of infrastructure designs.

The final investment decision on Kingfisher development now allows CNOOC, a Chinese oil firm, to award $460 million worth of contracts to Chinese and Ugandan players waiting to cash in on construction and logistics supplies.

Energy Minister Ruth Nankabirwa also confirmed the news during a Twitter engagement on Wednesday.

“I can confirm to you that CNOOC has taken its FID for the Uganda Oil projects and the chairman of CNOOC Uganda Ltd has written to me to confirm the same. They (CNOOC) are now ready to invest in the Uganda Oil Project,” she said.

Final Investment Decision (FID) is a decision that is reached by the partners in order to proceed with the project execution.

CNOOC is operating the KFDA Project situated in Kikuube and Hoima districts.

The project includes developing a Central Processing Facility (CPF) to process 40,000 barrels per day from 31 wells to be drilled on four well-pads.