Story by: East Africa Business Week
Uganda will earn close to $100 billion as its potential share of oil resources, a Tullow Uganda Country Report released last week shows.The Country Report indicates that once production begins, the government’s potential share will be $50 billion representing about 80% of the oil revenues after exploration costs are recouped from an approximated oil reserves of 1.7 billion barrels.
Uganda’s commercially viable oil is estimated at 3.5 billion barrels.
Tullow Uganda General Manager Jimmy Mugerwa, who presented the Country Report, said the impact of oil discovery in Uganda has yet to be fully realized. He said the revenue from oil production has the potential to transform the country.
“Tullow was one of the first exploration companies to risk its capital and invest in finding oil in the Lake Albert Rift Basin.
“To date almost 80 wells have been drilled by Tullow, underpinning gross resources of around 1.7 billion barrels of oil.
“Together with our partners, we are now working closely with government to achieve First Oil, whilst respecting Uganda’s rich social and environmental heritage,” Mugerwa said.
Mugerwa said their company has invested $2.8 billion (about Ush7 trillion) in exploration for oil and the acquisition of Heritage Oil’s interests in Uganda during 2004.
The Country Report states that the estimated capital investment for the upstream development of Uganda’s discovered oil in the Lake Albert Rift Basin will be in the range of $8 to $12 billion.
“The development phase will take approximately three years after the final investment decision,” Mugerwa said.
Mugerwa said it implies timely completion and approvals of the Field Development Plans (FDPs) that will lead to getting the Final Investment Decisions by the various company boards with the next 24 months.
“The scale and complexity of the project plus geographical characteristics and upgrading needs to start now to ensure first oil as soon as possible,” he said.
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