Business
Uganda and Kenya to introduce new round of licensing for oil & gas exploration
Wednesday, January 2, 2013
The new licencing scheme is intended to bring positive pressure to the bargaining table. A renewed focus on exploration, which so far has been successful, could potentially upgrade Uganda’s prospects, now at 3.5 billion barrels, to an estimated 10 billion barrels or more. The new discoveries strengthen the refinery option as well as the pipeline.
The Ministries of Energy in both Uganda and Kenya, in December 2012, both placed contractual bids for a refined petroleum pipeline, which can also carry crude, to connect the two countries. This signals a compromise reached by the two countries.
Mr. Museveni has hinted recently, that government policy will not look favorably at licensing companies from countries deemed “hostile to Uganda.”
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