Uganda looking to start oil production by 2018

The investment, spread over 4 years, will develop infrastructure like the roads leading to the well which is partly offshore and partly onshore, drilling 40 development wells, piping and building a central processing plant.

It is a recoverable cost, which means that the companies will recoup it all once production begins in accordance with the Production Sharing Agreement that the companies and the Uganda government signed.

The government has also announced it will participate in the King Fisher licence with a 15 percent stake once production begins. At the King Fisher field, the recoverable rate is estimated at 31 percent, but that could increase with use of technology.

Source: The East African

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