Ministry to invite bids for Semliki oil wells

Dec 04, 2006

THE Government is to invite bids for oil drilling and exploration in the Semliki, western Uganda, the energy ministry announced yesterday.

By Mary Karugaba

THE Government is to invite bids for oil drilling and exploration in the Semliki, western Uganda, the energy ministry announced yesterday.

Permanent Secretary Kaliisa Kabagambe said they would invite bids from the public in March next year.

He said unlike other explorations, Semliki wells would go through the bidding process because “we have at least known there is oil there and we have interests”.

“We have resorted to public bidding because we have interest in the Semliki oil well. We must now dictate because we know that oil is there and discoveries have shown that there is more oil, so we are not begging here. We must dictate on terms unlike in areas where we are not sure,” he said.

In July, Heritage Oil and Gas, an oil exploration company, abandoned a portion of the Semliki exploration area on Block 3 and handed it back to the Government following a disappointing discovery of excessive carbondioxide in the oil.

The company launched a fresh exploration programme further north to drill a deeper well (kingfisher-1) on a surface location on Bugoma flats.
Hardman Resources and Tullow Oil PLC are currently drilling oil in Lake Albert.

Kabagambe was appearing before Parliament’s Public Accounts Committee to answer queries raised by the Auditor General. The committee is chaired by Nandala Mafabi.

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