The Ugandan government has repossessed the Ngassa oilfield from British explorer Tullow Oil after the company failed to keep up with the appraisal schedule and the East African country failed to renew the license.<\/p>\n
The British company which has drilled two wells in the field which showed hydrocarbon deposits has however said that the field was uneconomical and had been written off due to \u2018offshore appraisal and development.\u2019<\/p>\n
Uganda says the oilfield will now be reverted back to the government and will be up in the new licensing round for the vacant exploration acreage with about 40 petroleum companies having showed interest.<\/p>\n
Tullow Oil however has a huge part to play in Uganda\u2019s oil sector being one of the three companies (alongside CNOOC and Total) that expected to start oil production by 2017 and is currently awaiting approval for 8 production licenses by the government.<\/p>\n
In the Albertine rift basin Uganda has struck 3.5 billion barrels of crude oil reserves with more hope as the basin that borders the Congo continues to be explored with about 70 percent yet to be surveyed.<\/p>\n
Uganda plans to produce 200,000 barrels in its peak 60,000 of which will be used locally including with neighboring states while the rest will be exported through the Lamu port in Kenya.<\/p>\n
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