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

Video British Fighters on Frontline of Islamic State Information War

It’s estimated that several hundred British citizens are fighting for Islamic State alongside other foreign jihadists More

Pakistan's Political Turmoil Again Shines Spotlight on Military

Thousands of protesters calling for PM Sharif to step down continue protests in front of parliament, as critics fear political impasse could spur another military coup More

Photogallery Ebola Quarantines Spark Anxiety in Liberian Capital

Food prices rise sharply as residents attempting purchases clash with security forces, leaving one person dead More

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

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Native Bees May Help Save Cropsi
X
Deborah Block
August 22, 2014 12:23 AM
U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video Native Bees May Help Save Crops

U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video US Defense Officials Plan for Long-Term Strategy to Contain Islamic State

U.S. defense officials say American air strikes in Iraq have helped deter Islamic State militants for the time being, but that a broad international effort is needed to defeat the extremists permanently. Defense Secretary Chuck Hagel warned Thursday that the group formerly known as the Islamic State in Iraq and the Levant, or ISIL, is better organized, and financially and militarily stronger than any other known terrorist group. Zlatica Hoke has more.
Video

Video Drug-Resistant Malaria Spreads in Southeast Asia

On Thailand’s border with Myanmar, also known as Burma, a malaria research and treatment clinic is stepping up efforts to eliminate a drug-resistant form of the parasite - before it spreads abroad. Steve Sandford reports from Mae Sot, Thailand.
Video

Video Gaza Conflict, Hamas Popularity Challenge Abbas

The Palestinian unity government of Mahmoud Abbas has failed to convince Hamas to agree to Egyptian-negotiated terms with Israel on a Gaza cease-fire. VOA State Department Correspondent Scott Stearns reports on what the Gaza conflict means for President Abbas, with whom U.S. officials have worked for years on a two-state solution to the Israeli-Palestinian conflict.
Video

Video Nigeria's 'Nollywood' Movie Industry Rolls in High Gear

Twenty years after its birth in a video shop in Lagos, Nigeria's "Nollywood" is one of the most prolific film industries on earth. Despite low budgets and whirlwind production schedules, Nigerian films are wildly popular in Africa and industry professionals say they hope, in the future, their films will be as great in quality as they are in quantity. Heather Murdock has more for VOA from Lagos.
Video

Video UN Launches 'Biggest Aid Operation in 30 Years' in Iraq

The United Nations has launched what it describes as one of the biggest aid operations in 30 years in northern Iraq, as hundreds of thousands of refugees flee the extremist Sunni militant group calling itself the Islamic State. As Kurdish and Iraqi forces battle the Sunni insurgents, the fighting has forced more people to flee their homes. Kurdish authorities say the international community must act now to avert a humanitarian catastrophe. Henry Ridgwell reports for VOA from London.
Video

Video Cambodian American Hip Hop Artist Sings of Personal Struggles

A growing underground movement of Cambodian American hip hop artists is rapping about the struggles of living in urban America. Most, if not all of them, are refugees or children of refugees who came to the United States from Cambodia to escape the Khmer Rouge genocide of the 1970s. Through their music, the artists hope to give voice to immigrants who have been struggling quietly for years. Elizabeth Lee reports from Long Beach, California.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.

AppleAndroid