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Uganda announces first crude oil sale and auction of new exploration blocks

By Angelo Izama

Added 13th February 2015 03:51 PM

Ugandan crude will be sold for the first time this year. The one-off sale by competitive bidding consists of 40,000 barrels extracted and stored earlier from extended well testing. An announcement about the sale was made by the Petroleum Exploration

Ugandan crude will be sold for the first time this year. The one-off sale by competitive bidding consists of 40,000 barrels extracted and stored earlier from extended well testing. An announcement about the sale was made by the Petroleum Exploration

By Angelo Izama 

Ugandan crude will be sold for the first time this year. The one-off sale by competitive bidding consists of 40,000 barrels extracted and stored earlier from extended well testing. An announcement about the sale was made by the Petroleum Exploration and Production Department [PEPD] the oil sector planning and regulatory body based in Entebbe.
 
The sale will have some symbolic value; good and bad.
 
Actual commercial production of oil is over 5 years away in our estimation. However the present sale itself- which could have been done two years ago, is testimony to the pace of affairs in the sector.
 
The price per barrel of the test crude won’t reflect either the current global dynamic or future prices. Interested buyers will likely sell it to offtakers at the Kenya Petroleum Refineries Ltd. Its reasonable speculation however to expect that had this test crude been sold 24 months ago- it would have fetched more than the under 28$ per barrel its bound to garner now.
 
 

Ugandan crude will be sold for the first time this year. The one-off sale by competitive bidding consists of 40,000 barrels extracted and stored earlier from extended well testing. An announcement about the sale was made by the Petroleum Exploration

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