• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days Does Toyota Know Something That We Don’t?
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 9 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Foreign Oil Companies Near Commercial Output in Uganda

International oil companies have moved one step closer to launching commercial crude production in Uganda as the government announces the finalization of talks with foreign oil explorers and a licensing round is expected to open later this year.

Major operators in Uganda—including Tullow, Total and China’s CNOOC—are set to sign a memorandum of understanding (MOU) with the government of Uganda for the development of 20 oil fields in equal-partnership ventures.

Each of the companies are set to serve as the operators of three blocks.

Uganda’s oil development plans also include a 60,000-barrel-per-day refinery, a crude export pipeline to Kenya's northern port of Lamu and a crude-fired electricity plant.

Resettlement of people living in the area earmarked for the refinery has been completed. This will be followed by publication of a regulatory framework for the sector, and a licensing round for interested bidders is expected to be launched this year.

Related article: Algeria Ready for Oil and Gas Return

Agreement over the refinery and pipeline had stymied further development of Uganda’s oil fields. The government’s recent decision to agree to a shared East African pipeline connecting inland countries Kenya’s Lamu port for utilization of Uganda, Kenya and South Sudan has revived regulatory discussions.

Uganda has been seeking foreign partners to invest in the refinery’s construction, and has now shortlisted eight companies for the project.

“It’s a significant milestone since the market framework is critical for the commitment of project financing,” Uganda’s Energy Minister told reporters.

Earlier this month, the Ugandan government noted it had received applications for the development of 10 oil fields in the Lake Albertine Rift Basin.

Uganda made its first big find in 2006, but development to the production stage here has lagged far behind some of the other emerging East and West African favorites, particularly Angola and Ghana, and potentially Kenya, where things will move faster once commercial viability is established.

Related article: Oman and BP Finalize Gas Deal, Signaling Regional Change

Uganda contains sub-Sahara Africa's fourth-largest amount of oil reserves, behind South Sudan, Angola and Nigeria. Uganda has 3.5 billion barrels of crude oil.

ADVERTISEMENT

East Africa has been identified as the next oil and gas production frontier with more than four countries in the region announcing oil and gas finds; Kenya and Ethiopia being the latest.

An acceleration of oil-related activity is likely to drive faster GDP growth in Uganda in the years ahead, although first oil is not expected until 2017 or 2018 at the earliest.

By. Charles Kennedy of Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News