Uganda oil bonanza growing

2014-08-29 22:29

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Kampala - Uganda's estimated oil reserves have almost doubled to more than 6.5 billion barrels based on new estimates by international oil companies prospecting in the East African country, the Energy Ministry said on Friday.

Commercial oil deposits were first discovered in the north-western Albertine Graben region in 2006, and deposits of some 3.5 billion barrels were confirmed two years ago.

"The increase in the estimated petroleum resources is a result of the evaluation of the data and information acquired by the oil companies during the ongoing appraisal of the discoveries in the Albertine Graben," the ministry said in a statement.

"Of this estimated 6.5 billion barrels of oil in place, 1.4 billion barrels of oil are estimated to be recoverable," it added.

Several companies including Total and London-based Tullow are prospecting for oil in Uganda, but only the China National Offshore Oil Corporation (CNOOC) already has a production licence.

Uganda has not yet started producing oil, but the government has laid out ambitious plans to develop the oil industry. A refinery that is being built in the north-west is due to start producing about 60 000 barrels daily in 2017.

The known oil reserves could increase considerably, according to the ministry. "Exploration work has only been undertaken in less than 40% of the Albertine Graben, which is the most prospective sedimentary basin in the country," it said.

The oil discoveries have raised hopes that Uganda could eventually follow the lead of Africa's top oil producers such as Nigeria, Algeria and Angola.

Reserves of 500 billion cubic feet of gas, which can be used in electricity generation and production of liquefied petroleum gas, have also been discovered.

In October 2011, Uganda's parliament suspended all new oil transactions after it was alleged that three cabinet ministers had received millions of dollars in bribes from Tullow. The suspension lasted less than a year. The three ministers were not charged and are still in government.

Read more on:    china  |  uganda  |  mining

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
7 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.