• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 2 mins End of EV Subsidies?
  • 54 mins Maersk's COO statment.
  • 5 hours Citi cuts Apple's price target
  • 6 hours Asian stocks down
  • 1 hour Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 3 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 10 hours China Builds LNG Icebreaker
  • 4 hours GOODBYE FOREIGN OIL DEPENDENCE!!
  • 2 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 11 hours Price Decline in Chinese Solar Panels
  • 12 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 3 hours Regular Gas dropped to $2.21 per gallon today

Uganda Eyes 2016 for Commercial Output

Bottom Line: The earliest we can expect commercial output from Uganda is 2016 as production stalls over tax questions and local refining uncertainty.

Analysis: 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. Uganda has 3.5 billion barrels of crude oil, but getting it out of the ground is proving difficult.  Right now, Uganda uses tankers to get its fuel to Kenya’s port of Mombasa but a new local refinery in Uganda is supposed to resolve this with a 30,000 barrel per day capacity. However, the refinery—intended to be a public-private partnership with neighboring countries—is experiencing some difficulties. The majors operating in Uganda (Total, CNOOC and Tullow) aren’t keen on the refinery (at least on this scale) and Total and CNOOC have agreed to build a smaller one, but overall would rather pipe through Kenya’s coast. Production sharing agreements and the tax regime are also uncertain.

Recommendation: For instance, Uganda attracted investments worth $1.7 billion in 2012 thanks to heavy investments by oil exploring companies from the UK, France and China. But the Ugandan government can be whimsical with its oil. Recall the 2010 legal battle that began when the Ugandan government demanded…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




Oilprice - The No. 1 Source for Oil & Energy News
-->