Gulf Oil and Gas accountACCOUNT

Uganda Investment in Oil Exploration Hits $1.7 Billion

Source: The Wall Street Journal 3/25/2013, Location: Africa

Investment in oil exploration activities in Uganda's Lake Albertine Rift basin has reached at least $1.7 billion as oil companies continue efforts to determine the exact size of the East African nation's crude reserves, Uganda's energy and minerals ministry said.

In a report, the ministry said that by the end of January 2013, a total of 88 oil exploration and appraisal wells had been drilled in the country, with 76 of them encountering oil. The discoveries represent an impressive success rate of 85% with less than 40% of the oil region explored so far, as Uganda steps up efforts to join the ranks of top oil producers such as Nigeria, Angola and Sudan in Sub-Saharan Africa.

"Cumulative investments made in petroleum exploration in the country since 1998 are estimated to be $1.7 billion... this is expected to increase as the country enters the development and subsequently the production and refining phase of the petroleum value chain," said Kalisa Kabagambe, permanent secretary at the energy and minerals ministry.

Increased discoveries have upgraded the country's crude reserve estimates to 3.5 billion barrels from 2.5 billion barrels last year. However, government and oil companies are still split over the oil development plan and refining options, which continue to push back the planned start of production.

More than a year since Uganda approved U.K.-based Tullow Oil PLC's long-delayed $2.9 billion agreement to split its oil licenses with Total SA and Cnooc Ltd., an oil development plan is yet to be agreed for the basin.

Tullow, Total and Cnooc want to sell crude on the open market and are considering $5 billion of investment in crude pipelines to the East African coast. But Uganda insists that most of the oil should be refined locally, initially for domestic consumption and then for regional export. The three companies are planning to invest at least $12 billion to develop the oil fields.

For more information about related Opportunities and Key Players visit East Africa Projects

Investment News in Uganda >>

Nigeria >>  2/22/2021 - San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, notes the announcement on the funding arrang...
United Arab Emirates >>  2/22/2021 - The Abu Dhabi National Oil Company (ADNOC) has announced, its Thamama Center of Excellence (Thamama) has generated $1.1 billion (AED 4.04 billion) in ...

United Kingdom >>  2/22/2021 - Integrated subsea technology and services provider Ashtead Technology has invested 1million to develop a new R&D and engineering facility in Aberdeen...
Nigeria >>  2/21/2021 - The Department of Petroleum Resources (DPR) has called on businessmen to invest in the oil and gas industry instead of indulging in illegal refineries...

Italy >>  2/19/2021 - Eni's Board of Directors, chaired by Lucia Calvosa, yesterday approved the unaudited consolidated results for the full year and the fourth quarter of ...
Russia >>  2/12/2021 - - Net income in 4Q 2020 reached a record of RUB 324 bln and amounted to RUB 147 bln in 2020. ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Uganda Oil & Gas 1 >>  2 | 3 | 4 |

More News

Related Links

Gulf Oil and Gas
Copyright 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.