Uganda, a relatively new player on the international oil stage, expects to rake in investments in the amount of US$15-20 billion over the next three to four years, the executive director of the country’s petroleum Authority, Ernest Rubondo said at a conference in South Africa.
Earlier this month, Nigerian Oranto Petroleum sealed two production sharing deals in Uganda to explore for hydrocarbons around Lake Albert.
The company won the rights to explore the area at Uganda’s first-ever oil and gas licensing round that took place last year, a decade after oil was first discovered in the country.
The first discovery was made in the Albertine Basin, near Uganda’s border with the Democratic Republic of Congo. The country’s total recoverable reserves are estimated at between 1.4 and 1.7 billion barrels of crude, with first oil planned to start flowing in 2020.
Other estimates peg Ugandan oil reserves at 6.5 billion barrels, with the International Monetary Fund estimating that the commodity could contribute about 4 percent of annual GDP over the next few years as long as they are managed well.
Besides Oranto Petroleum, another recent entrant into the Ugandan oil industry is Australia’s Armour Energy, which signed a production sharing agreement with the government in Kampala in September.
Edited by Jesus Chan
Do you want to add feedback to this story? Please add a comment in the box below or send us an email at email@example.com
Like our Facebook page https://www.facebook.com/TheReadersBureau
Follow us on Twitter https://twitter.com/readersbureau21