• No_Ads
Business
Uganda signs memorandum with oil firmsPublish Date: Feb 06, 2014
Uganda signs memorandum with oil firms
  • mail
  • img
Journalists, NEMA and UWA officials at one of the oil wells known as Waraga I in Bunyoro. File Photo
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
Slow infrastructure development frustrates Namanve investors
Investors are agitated by the lack of coordination between government agencies and the slow progress of fixing the wanting infrastructure in gazetted industrial parks....
Embrace domestic tourism - minister
When Kampalans were told to exploit domestic tourism by minister of tourism Maria Mutagamba at Speke Resort Munyonyo, men craned their necks to take second glances at curvy ladies dressed in flowing saris and tight fitting Jeans trousers....
Uganda
The volume of flights, passengers and cargo, according to data from Civil Aviation Authority (CAA), Entebbe International Airport are on a steady increase....
Uganda’s Cotton exports to increase, thanks to WTO
Cotton exports from Uganda are set to increase once the recommendations by trade ministers in the Bali 9th ministerial conference are implemented....
New laboratory to increase milk exports
Uganda is set earn more from milk exports following the opening of a testing laboratory that meets the International Standards (ISO) 17025 and International Dairy Federation requirements....
AU calls for investment in agric
Lack of modern technology for agricultural practice is to blame for the low production of food on the African continent....
Is the return of Buganda Properties a sign of good Governance?
Yes
No
Can't Say
follow us
subscribe to our news letter