Oil output to reach 350,000 barrels by 2018, says Tullow
UGANDA’S oil production could double from the current target of 150,000 barrels of oil per day to 350,000 in 2018.<br>Aidan Heavey, the Tullow Oil chief executive officer, said the firm was likely to produce twice as much oil as expected “if the right development plan is adopted.â€
By Ibrahim Kasita
UGANDA’S oil production could double from the current target of 150,000 barrels of oil per day to 350,000 in 2018.
Aidan Heavey, the Tullow Oil chief executive officer, said the firm was likely to produce twice as much oil as expected “if the right development plan is adopted.â€
Speaking to Business World, Ireland’s top business website, on Friday, he said: “When the oil basin is in full production, we are probably talking about 350,000 barrels per day.â€
The firm plans to start producing crude oil this year, with initial production at a rate of 1,000 barrels per day.
This will progressively rise to 10,000 barrels next year, and 150,000 in 2015.
The oil will be produced from the Kasamene field in Buliisa and will be used locally, especially for power generation.
The revelation came after Fred Kabagambe-Kaliisa, the energy ministry’s permanent secretary, confirmed that Tullow had partnered with the China National Offshore Oil Corporation (CNOOC) and France’s Total to develop Uganda’s oil sector.
He told the parliamentary natural resource committee recently that Tullow had been asked to submit the joint operating and sales purchase agreements for review.
“The farming-in partners, CNOOC and Total, have been invited to present their plans for development of the oil sector to the Government,†Kaliisa said.
“The approval for the partners to join the licences shall be made only upon confirmation that the partnership addresses the country’s interests.â€
The permanent secretary observed that there was a need to avoid monopoly for the country to benefit from a competitive and innovative environment in the sector, saying competition promotes transparency.
Kaliisa said Uganda required significant investment of $8b in the next 10 years to develop the oil and gas industry. He also called for the establishment of a Ugandan oil company.
“The Government should form an oil company to increase national participation, especially in commercial aspects of the oil and gas sector,†he advised.
Early this month, Tullow reached an agreement with former partner, Heritage Oil, to take over its 50% stakes in two blocks after exercising the pre-emption clause.
Tullow also plans to sell some of its assets to another partner, who will help with the construction of the refinery and an export pipeline.
“The investment is going to be huge. We are talking about multiple billions of dollars of investments,†Heavey said.
It would, therefore, be good if both Total and the Chinese were involved, he added.
UGANDA’S oil production could double from the current target of 150,000 barrels of oil per day to 350,000 in 2018.
Aidan Heavey, the Tullow Oil chief executive officer, said the firm was likely to produce twice as much oil as expected “if the right development plan is adopted.â€
Speaking to Business World, Ireland’s top business website, on Friday, he said: “When the oil basin is in full production, we are probably talking about 350,000 barrels per day.â€
The firm plans to start producing crude oil this year, with initial production at a rate of 1,000 barrels per day.
This will progressively rise to 10,000 barrels next year, and 150,000 in 2015.
The oil will be produced from the Kasamene field in Buliisa and will be used locally, especially for power generation.
The revelation came after Fred Kabagambe-Kaliisa, the energy ministry’s permanent secretary, confirmed that Tullow had partnered with the China National Offshore Oil Corporation (CNOOC) and France’s Total to develop Uganda’s oil sector.
He told the parliamentary natural resource committee recently that Tullow had been asked to submit the joint operating and sales purchase agreements for review.
“The farming-in partners, CNOOC and Total, have been invited to present their plans for development of the oil sector to the Government,†Kaliisa said.
“The approval for the partners to join the licences shall be made only upon confirmation that the partnership addresses the country’s interests.â€
The permanent secretary observed that there was a need to avoid monopoly for the country to benefit from a competitive and innovative environment in the sector, saying competition promotes transparency.
Kaliisa said Uganda required significant investment of $8b in the next 10 years to develop the oil and gas industry. He also called for the establishment of a Ugandan oil company.
“The Government should form an oil company to increase national participation, especially in commercial aspects of the oil and gas sector,†he advised.
Early this month, Tullow reached an agreement with former partner, Heritage Oil, to take over its 50% stakes in two blocks after exercising the pre-emption clause.
Tullow also plans to sell some of its assets to another partner, who will help with the construction of the refinery and an export pipeline.
“The investment is going to be huge. We are talking about multiple billions of dollars of investments,†Heavey said.
It would, therefore, be good if both Total and the Chinese were involved, he added.