Tullow Oil, in January this year, agreed to transfer 21.57 percent of its 33.33 percent interests in Lake Albert Development Project covering exploration areas 1, 1A, 2 and 3A to Total for a total consideration of USD 900 million 3.27 trillion Shillings.
Ely Karuhanga, the chairman Uganda Chambers of Mines and Petroleum, says there is need for Ugandans to double their efforts to tap into the opportunities that will come with the oil production.
The larger burden of the MoU falls onto the government which is expected to construct a 60,000 barrels-per day refinery, approve the studies and surveys for an export pipeline and also to initiate discussions with neighbouring countries for the path of the oil pipeline. The three oil companies in return will give government’s refinery the right of first call on production volumes, supply crude oil for power generation and also endorse and support government’s refinery project.
Of the ten applications, only one production license has been issued, in September 2013, and that is for the Kingfisher Discovery currently being operated by CNOOC. Uganda is estimated to have discoveries estimated at 3.5 billion barrels with potential extraction being 1.2 billion barrels.
After serving as President of Tullow Uganda for the last seven years, the company has today announced that Elly Karuhanga will step down from this role at the end of 2013.
“This is an important milestone not only for Total E&P Uganda, but also for its joint venture partners CNOOC and Tullow because the FDP approval will lead to the next stage in the oil and gas cycle, the development stage and ultimately to production,†read the statement.
The Uganda government has released the final shortlist of companies and consortia from which one will be picked to build the first phase of the proposed oil refinery.
