News / Africa

    Uganda Signs Development Deal with Major Oil Companies

    FILE - An aerial view of an oil exploration site in Bulisa district, approximately 244 km (152 miles) northwest of Kampala in this undated handout photo from Tullow Oil Uganda, received by Reuters July 4, 2012. FILE - An aerial view of an oil exploration site in Bulisa district, approximately 244 km (152 miles) northwest of Kampala in this undated handout photo from Tullow Oil Uganda, received by Reuters July 4, 2012.
    x
    FILE - An aerial view of an oil exploration site in Bulisa district, approximately 244 km (152 miles) northwest of Kampala in this undated handout photo from Tullow Oil Uganda, received by Reuters July 4, 2012.
    FILE - An aerial view of an oil exploration site in Bulisa district, approximately 244 km (152 miles) northwest of Kampala in this undated handout photo from Tullow Oil Uganda, received by Reuters July 4, 2012.
    After years of negotiations, the Uganda government has finally signed a deal with three major oil companies for development of its petroleum reserves.

    On Thursday Uganda’s Ministry of Energy announced that it had signed a memorandum of understanding with the U.K.’s Tullow Oil, France’s Total and China’s Cnooc, paving the way for the development of the oil reserves recently discovered in western Uganda.

    The government had been in talks with the oil majors for years, but until this week no agreement had been reached.

    Gloria Sebikari of the ministry’s petroleum department says the deal with the three companies should lead to more than just development of the oil fields themselves.

    “It’s a significant step, because this memorandum of understanding gives a road map for commercialization of the petroleum resources that are being discovered in Uganda," she said. "The plan provides for use of petroleum for power generation, supply of crude oil to the refinery to be developed in Uganda, and then export of crude oil to an export pipeline or any other viable option to be developed by the oil companies.”

    Energy Minister Irene Muloni told reporters Thursday that the companies had already invested up to $3.5 billion in exploration.

    But the timeline for commercial production of Uganda’s oil has already been pushed back several times. Sebikari says it will still be at least two years before the black stuff is pumped out of the ground.

    “The initial plan is to have crude oil for power generation, and we are thinking this can be achieved by 2016. But commercial production to the refinery should be by 2017 [or] 2018 because that’s when we see the refinery being in place,” said Sebikari.

    Kenya and Uganda had also discussed building a pipeline from South Sudan’s oil fields to the Kenyan coast. But the conflict in South Sudan has put those plans on hold.

    You May Like

    Pentagon: Afghan Hospital Bombing Not a War Crime

    US Central Command's Joseph Votel says probe found tragedy was result of 'extraordinarily intense situation' that included multiple equipment failures

    US Minorities Link Guns with Other Social Ills

    New study finds reduction in gun violence could help lower America’s incarceration rate – the world’s highest - and improve relationships between police, citizens in minority communities

    Speeding Causes Spike in Deaths on South African Roads

    At least 14,000 people die each year from country’s traffic-related incidents; authorities criticized on issues of safety, legal enforcement

    This forum has been closed.
    Comment Sorting
    Comments
         
    by: Chrislau39@ovi.com from: Mwanza
    February 09, 2014 10:31 AM
    its a good opportunity to boost socio-economic activities especially to the rural people who are mostly affected Byeje different development intervation .

    by: Jfrank from: Nigeria
    February 09, 2014 9:57 AM
    I pray Uganda's oil bring her blessings rather than curses like nigeria. Down with Britain for Amalgamating nigeria.

    by: Kiptui shadrack from: kericho,kenya
    February 08, 2014 3:51 PM
    It will assist to boost the economy of the uganda and ugandans in large.

    by: David from: Kinshasa
    February 08, 2014 3:19 PM
    What's about DRCongo section in oil lake Albert which we share with Ouganda? We suppose to start exploit this oil on same time DRCongo-Uganda.

    by: Allan K from: masaka, uganda
    February 08, 2014 1:58 AM
    It will be a great step ahead in a robust economic debt for our country

    by: safeullah from: kabul
    February 07, 2014 2:51 PM
    It will be a positive step for development of Uganda for a bright future

    By the Numbers

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Turkish Kurd Islamist Rally Stokes Tensionsi
    X
    April 29, 2016 12:28 AM
    In a sign of the rising power of Islamists in Turkey, more than 100,000 people recently gathered in Diyarbakir, the main city in Turkey’s predominantly Kurdish southeast, to mark the birthday of the Prophet Muhammad. The gathering highlighted tensions with the pro-secular Kurdish nationalist movement. Dorian Jones reports from Diyarbakir.
    Video

    Video Turkey Islamists

    In a sign of the rising power of Islamists in Turkey, more than 100,000 people recently gathered in Diyarbakir, the main city in Turkey’s predominantly Kurdish southeast, to mark the birthday of the Prophet Muhammad. The gathering highlighted tensions with the pro-secular Kurdish nationalist movement. Dorian Jones reports from Diyarbakir.
    Video

    Video Pakistani School Helps Slum Kids

    Master Mohammad Ayub runs a makeshift school in a public park in Islamabad. Thousands of poor children have benefited from his services over the years, but, as VOA's Ayesha Tanzeem reports, roughly 25 million school-age youths don't get an education in Pakistan.
    Video

    Video Florida’s Weeki Wachee ‘Mermaids’ Make a Splash

    Since 1947, ‘mermaids’ have fascinated tourists at central Florida’s Weeki Wachee Springs State Park with their fluid movements and synchronized ballet. Performing underwater has its challenges, including cold temperatures and a steady current, as VOA’s Lin Yang and Joseph Mok report.
    Video

    Video Somali, African Union Forces Face Resurgent Al-Shabab

    The Islamic State terror group claimed its first attack in Somalia earlier this week, though the claim has not been verified by forces on the ground. Meanwhile, al-Shabab militants have stepped up their attacks as Somalia prepares for elections later this year. Henry Ridgwell reports there are growing frustrations among Somalia’s Western backers over the country’s slow progress in forming its own armed forces to establish security after 25 years of chaos.
    Video

    Video Bangladesh Targeted Killings Spark Wave of Fear

    People in Bangladesh’s capital are expressing deep concern over the brutal attacks that have killed secular blogger, and most recently a gay rights activist and an employee of the U.S. embassy. Xulhaz Mannan, an embassy protocol officer and the editor of the country’s only gay and transgender magazine Roopban; and his friend Mehboob Rabbi Tanoy, a gay rights activist, were hacked to death by five attackers in Mannan’s Dhaka home earlier this month.
    Video

    Video Documentary Tells Tale of Chernobyl Returnees

    Ukraine this week is marking the 30th anniversary of the world's worst nuclear accident, at the Chernobyl nuclear power plant. Soviet officials at first said little about the accident, but later evacuated a 2,600-square-kilometer "exclusion zone." Some people, though, came back. American directors Holly Morris and Anne Bogart created a documentary about this faithful and brave community. VOA's Tetiana Kharchenko reports from New York on "The Babushkas of Chernobyl." Carol Pearson narrates.
    Video

    Video Nigerians Feel Bite of Buhari Economic Policy

    Despite the global drop in the price of oil, Nigerian President Muhammadu Buhari has refused to allow the country's currency to devalue, leading to a shortage of foreign exchange. Chris Stein reports from Lagos businessmen and consumers are feeling the impact as the country deals with a severe fuel shortage.
    Video

    Video  Return to the Wild

    There’s a growing trend in the United States to let old or underused golf courses revert back to nature. But as Erika Celeste reports from one parcel in Grafton, Ohio, converting 39 hectares of land back to green space is a lot more complicated than just not mowing the fairway.
    Video

    Video West Urges Unity in Libya as Migrant Numbers Soar

    The Italian government says a NATO-led mission aimed at stemming the flow of migrants from Libya to Europe could be up and running by July. There are concerns that the number of migrants could soar as the route through Greece and the Balkans remains blocked. Western powers say the political chaos in Libya is being exploited by people smugglers — and they are pressuring rival groups to come together under the new unity government. VOA's Henry Ridgwell reports.
    Video

    Video Russia’s TV Rain Swims Against Tide in Sea of Kremlin Propaganda

    Russia’s media freedoms have been gradually eroded under President Vladimir Putin as his government has increased state ownership, influence, and restrictions on critical reporting. Television, where most Russians get their news, has been the main target and is now almost completely state controlled. But in the Russian capital, TV Rain stands out as an island in a sea of Kremlin propaganda.

    Special Report

    Adrift The Invisible African Diaspora