Business
Tullow, govt to sign agreement
Publish Date: Jan 27, 2014
Tullow, govt to sign agreement
Energy minster Irene Muloni
  • mail
  • img
newvision

By Vision Reporter

UGANDA has agreed with explorers in western Uganda on a basic framework for the commercial exploitation of oil in the Lake Albert region. 

Singing it off should come in the first half of this year, the energy minister said last week.

Since the establishment of commercially viable quantities of oil in 2006, the Government has been negotiating with UK-based oil explorer Tullow, France’s Total and China’s CNOOC on the most appropriate way of exploiting the estimated 3.5 billion barrels in the Albertine region.

“The Government, Tullow, CNOOC and Total have agreed on all the elements of a commercial framework memorandum of understanding that consists of a value chain in which the upstream production feeds into an optimally-sized refinery, a crude export pipeline and a crude to power plant for electricity generation,” energy minster Irene Muloni said over the weekend.

Speaking during the farewell party for long-time chairman of Tullow’s Uganda unit Elly Karuhanga, the minister added that the agreement is key to getting financing for the project leading to eventual production.

“During 2013, the Petroleum Exploration and Production Department of the energy ministry received 10 field development plans and 10 applications for production licenses, from Tullow, CNOOC and Total. We have already granted a production license to CNOOC and we expect to grant production licenses to Tullow and Total in the next six months,” she said.

Tullow’s executive director Graham Martin commended Karuhanga for his dedication to the business, wise counsel and insights into the country’s workings. Karuhanga has served as president and director of Tullow Uganda Operations and was senior advisor - Africa, for Tullow Oil between 2005 and December 31, 2013 when he retired.

He is also the chairman of the Uganda Chamber of Mines and Petroleum.

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
Gov’t to enact law against SACCOs money theft
Government is in the process of enacting a law that that will punish those found guilty of stealing people’s savings through the Savings and Credit Schemes (SACCOS)....
Japan MPs set out to promote Uganda’s tourism
Legislators from the Japanese parliament are to promote Uganda as a tourist destination in the East African region, as revealed by two Japanese MPs....
Fresh row hits $8bn railway deal
Fresh controversy is stalking the over $8b Standard Gauge Railway deal, with the company that lost the deal seeking audience with the President....
BATU ends tobacco leaf business
British American Tobacco Uganda (BATU) will discontinue its leaf growing and export business after 86 years with a new player set to enter the market at the end of the year....
Police close illegal micro finance; over sh20m in savings lost
Police in Njeru Town Council has closed an illegal micro finance bank over defrauding unsuspecting members of the public over sh20m...
More oil resources found in Albert region
The Petroleum Exploration and Production Department has said that the oil resource confirmed is now 6.5 billion barrels from the fields studied....
Do you think banning the sale of single cigarette sticks will help regulate tobacco production?
yes
No
Can't Say
follow us
subscribe to our news letter