China Faces Another Setback In Africa As Uganda Suspends Chinese-Operated Kingfisher Oilfield Due To Safety Concerns

The Chinese-operated Kingfisher oilfield in Uganda has hit a major roadblock as the Petroleum Authority Uganda (PAU) has temporarily suspended operations due to safety concerns, as per a report by The East African.

This decision follows a tragic accident that occurred on 6 October, raising questions about safety standards in the project.

Ernest Rubondo, the executive director of PAU, expressed his dismay over the accident and emphasized that such incidents are unacceptable, especially in light of previous safety concerns raised with CNOOC Uganda Ltd (CUL), the project's operator.

As the regulatory body for the oil and gas sector, PAU has taken decisive action by issuing a directive to halt all Kingfisher field development operations until further notice.

In a letter addressed to CUL, Rubondo cited Section 177 of the Petroleum (Exploration, Development and Production) Act, 2013, as the legal basis for the suspension.

Consequently, CUL has been instructed to cease all activities at the Kingfisher oilfield from 12 am on Saturday, 7 October, 2023, until further instructions are provided.

Gloria Sebikari, the corporate affairs manager of PAU, confirmed that the tragic incident on October 6 resulted in the loss of a sub-contractor's staff member. The incident raised significant concerns about safety protocols at the Kingfisher project.

In response to the incident, PAU convened a meeting on 8 October with top executives from joint venture partners, including CNOOC, TotalEnergies, and Uganda National Oil Company.

The purpose of the meeting was to assess the situation and provide guidance on the ongoing oilfield developments.

The Kingfisher project, operated by CNOOC, plays a pivotal role in Uganda's oil production plans, with preparations underway for oil production in 2025.

With a daily production capacity of 40,000 barrels, it is a critical asset in Uganda's energy landscape.

Additionally, the Tilenga project, operated by TotalEnergies, is expected to achieve a peak production of 190,000 barrels per day, further enhancing Uganda's position in the oil industry.

The suspension of the Kingfisher oilfield raises questions about China's commitment to safety and environmental standards in its overseas projects.

It also highlights the potential risks associated with Chinese investments in Africa, which have faced scrutiny for their environmental impact and labor practices.

Furthermore, this setback may strain China's relationship with Uganda, a country where China has been actively involved in infrastructure development and energy projects.

The suspension of the Kingfisher oilfield could lead to delays and financial losses, affecting China's interests in the region.