Uganda wins concessions from oil companies

13 février 2012

The East African |February 11, 2012

Prospects for bringing Uganda’s oil to the surface within the revised timeframe of 2015/17 have become brighter with the February 3 signing of new Production Sharing Agreements between the government and Irish oil explorer Tullow Oil.

However, the cost of the programme is now the subject of new variables, since under the revised agreements, the proposed export pipeline has been hived off in favour of an in-country refinery.

These developments, which by extension also unlocked Tullow’s $2.9 billion farm-down to partners Total and the China National Oil Offshore Oil Company CNOOC, pave the way for ramp up to oil production that will be preceded by design and implementation of a full field development programme that earlier estimates had suggested would cost in the region of $8-10 billion.

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