Uganda readies for oil production as MOU between gov’t and explorer nears

Oil rig in Uganda. PHOTO/Tullow Oil

With an estimated 3.5 billion barrels of untapped oil reserves, Uganda is expected to join Nigeria, Angola and Sudan among sub-Saharan Africa’s major crude producers.

Tullow Oil PLC is weeks away from an agreement with the Ugandan government on the final outline of a plan paving the way for investments of some $12 billion to develop the country’s nascent oil sector.

The plan includes a 30,000 barrels a day refinery initially and an export pipeline to carry the crude from the Lake Albert Rift basin oil fields that Tullow is developing with partners Total SA and China’s CNOOC Ltd.

The companies and the government of Uganda have already agreed the refinery size and an oil export pipeline but are working out the details on the capacity of the pipeline, which will depend on the development plan.

Read more: Fox Business