today's Pick
Uganda set to sign pact with Tullow
Publish Date: Jan 25, 2014
Uganda set to sign pact with Tullow
Irene Muloni, the energy minister
  • mail
  • img
newvision

KAMPALA - Uganda has completed negotiations with Britain's Tullow Oil and its partners and will soon sign an agreement that could pave the way for the start of crude production.

East Africa's third-largest economy struck hydrocarbon deposits in the Albertine rift basin but commercial production has been delayed and is not expected until 2016 at the earliest.

In a speech at a private function for Tullow, energy minister Irene Muloni said the government would shortly sign the memorandum of understanding (MoU) with Tullow and its partners, France's Total and China's CNOOC.

Developing Uganda's oil fields and building the required infrastructure would cost between $15 billion and $22 billion, although there were plans to try to reduce that, Muloni said.

"Negotiations about this MoU are now fully complete and we anticipate its signing very soon. This is a significant milestone since the market framework is critical for the commitment of project financing," she said.

Muloni did not say when the signing would take place.

The pact will detail the facilities required to be put in place, such as pipelines and a refinery, the roles of the different parties, and the flow rates for oil fields before actual production can start.

Uganda, which has 3.5 billion barrels worth of crude reserves, has agreed with oil firms to both a medium scale domestic refinery and a pipeline connecting to Kenya's newly-built Indian Ocean port of Lamu to export excess crude.

The refinery is to start with a small processing capacity of 30,000 barrels per day but is expected to be scaled up and capped at 60,000 barrels.

Tullow has previously said Uganda could earn about $50 billion from its oil resource over the fields' production life, estimated to be several years.

Reuters

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Russian opposition leader shot dead
A Russian opposition leader and fierce critic of President Vladmir Putin, Boris Nemtsov, was shot dead by an unidentified attacker late Friday....
Mugabe admits land reform blunder
Zimbabwean President Robert Mugabe has admitted he blundered by giving ill-equipped black farmers vast tracts of farmland...
Girls beat boys in 2014 A
The results for the 2014 Uganda Advanced Certificate of Education (UACE) have been released, with females performing better than their male counterparts....
Typhoid is spread through contaminated food, water
Ministry of Health confirmed cases of typhoid in Kampala and its surrounding districts....
2014 UACE: Results to be released today
The results for last year’s Uganda Advanced Certificate of Education (UACE) examinations will be released today, according to education minister Jessica Alupo....
WWII bomb found at Dortmund
Borussia Dortmund''s Westfalenstadion stadium was evacuated on Thursday after an unexploded WWII bomb was found during renovation work, the club announced....
Do you think government is doing enough to contain the typhoid out break?
Yes
No
Can't Say
follow us
subscribe to our news letter