Heritage to spend sh4b to develop oil districts

Mar 19, 2009

HERITAGE Oil Corporation, the Canadian firm exploring for oil in western Uganda, is to spend sh4b annually on developing the districts where it operates.

By Francis Kagolo

HERITAGE Oil Corporation, the Canadian firm exploring for oil in western Uganda, is to spend sh4b annually on developing the districts where it operates.

The corporation’s general manager for East Africa, Bryan Westwood, said the company had allocated $2m (about sh4b) in its budget for the corporate social responsibility projects.

The money will be used for constructing roads, clean water sources, schools, hospitals and other social amenities in Hoima, Buliisa, Pakwach and other districts where Heritage operates.

Westwood said this while handing over a primary school the company built in Buhuka parish, Kyangwari sub-county, to the Hoima district officials.

The seven-classroom school has staff quarters, offices and a house for the head teacher and his deputy. The classrooms also have enough furniture.

The school, which cost $300,000 (about sh600m), was named after Carl Nefdit, the Heritage official who was shot on Lake Albert last year.

“Production has not yet started but we consider corporate social responsibility as a task we must undertake in order to transform the villages where we operate from,” Westwood explained.

Yokonea Nyamayaro, the school’s head teacher, revealed that Carl Nefdit Buhuka Primary School was the only one in the parish and commended Heritage for helping to transform the peoples’ standards of living.

Westwood said the company had spent over sh1b on constructing three boreholes in Buhuka parish.
Abdul Byakagaba, the firm’s senior geologist, said the company would produce about 40,000 barrels (over 300 litres) of oil per day.

About 28,900 barrels are expected to be produced from the three wells in Block 3A in Buhuka.

The company has also drilled three wells in Block 1, which runs from Wanseko in Buliisa through the Murchison Falls National Park to Pakwach in West Nile.

“Uganda is capable of joining the class of super oil-producing countries,” Byakagaba said. “We are still testing the oil fields to determine how much we have and how to harvest it.”

He said the company would start tangible production in 2011.

Dr. Kasuki Kayizzi, a soils expert with the National Agricultural Research Organisation, dismissed allegations that oil exploration had affected soil fertility in the region.

He said they treat the rocky soils that are excavated from underground and confirmed that the exercise has had no negative impact on the environment so far.

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