Business
Uganda signs memorandum with oil firms
Publish Date: Feb 06, 2014
Uganda signs memorandum with oil firms
Journalists, NEMA and UWA officials at one of the oil wells known as Waraga I in Bunyoro. File Photo
  • mail
  • img
newvision

Uganda has signed a memorandum of understanding (MoU) regarding the start of oil production with Britain's Tullow Oil, Total of France and China's CNOOC, the government said.

East Africa's third-largest economy struck hydrocarbon deposits in 2006 but a tussle with oil firms over Uganda's demand for a refinery postponed commercial production, which is now expected to start in 2016 at the earliest.
 
"The government has signed an MoU on the sustainable development of the discovered petroleum resources in the Albertine Graben (basin) with the licensed oil companies operating in the country," the Energy Ministry said.
 
It said in a statement that the deal was signed late on Wednesday with the Ugandan units of Tullow, Total and CNOOC, which have formed a joint venture to develop the fields. A formal ceremony to mark the signing was held on Thursday.
 
The ministry said the MoU provided a framework for commercial production, including providing fuel for power generation, supplying crude oil to the refinery planned by the government and export of crude by pipeline.
 
Energy Minister Irene Muloni said last month that developing Uganda's oil fields and building infrastructure would cost between $15 billion and $22 billion, although there were plans to try to reduce that.
 
Uganda has agreed to build a pipeline to run to Kenya's planned new Indian Ocean port of Lamu, which is expected to become an export terminal for crude from Uganda, Kenya and other regional states.
 
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
MTN awards outstanding Ugandan women
The 2015 edition of MTN Women in Business Awards have seen Mrs. Barbara Ofwono, the proprietor of Victorious Schools scoop the overall Award of MTN Women in Business SME CEO of the year, applause for outstanding use of MTN Business’s overall service /prepositions to grow her business from one small...
Museveni to Asia: Uganda ready for investment
President Yoweri Museveni has called on the Asian bloc to work with the Africa to guarantee a shared prosperous future.“When we hear that the Asian countries are working “towards a Community of Common Destiny,” we are very happy. The Asian bloc should work with the African Continent to guarantee a...
Procuring and Disposing Entities (PDEs) of both public and private bodies have been advised to dialogue with bidders who do or are interested in doing business with them...
Shilling to weaken further, foreign currency denominated loans to suffer
Bankers have expressed concern over the continued depreciation of the shilling, saying the volatility will exert pressure on foreign currency denominated loans...
Access to finance biggest obstacle for MSMES
The biggest obstacle to business growth faced by Micro, Small and Medium Enterprises (MSMEs) in Uganda is access to finance, according to a survey released by FSD Uganda...
UNRA earmarks sh1.5bn for skills development
As the government moves to spend more on infrastructural development, UNRA has earmarked $500,000 (about sh1.5b) to register engineers in the country....
Should police arrest parents who do not take their children to school?
Yes
No
Can't Say
follow us
subscribe to our news letter