You are here

CNOOC shows interest in Uganda oil sector

31st July 2013

CNOOC eyes investments worth USD 6bn in Ugandan refinery complex and pipeline project

CNOOC shows interest in Uganda energy sector
Along with Total and the Tullow PLC, CNOOC is preparing its FDPs to commence oil production in the country’s energy rich Albertine Graben rift

China’s third largest national oil company CNOOC is said to have set its eye on Uganda’s energy sector, Moscow-based Oreanda News reported, in particular a refinery complex and pipeline project which could cost over USD 6bn.

 

CNOOC expressed its interest following meetings in Beijing between the company’s chairman Wang Yilin and the Ugandan prime minister Amama Mbabazi.

 

Our desire is not just revenues but achievement of the strategic objectives of transformation, and we needed people that could be reliable and trusted,” prime minister Mbabazi said.

 

CNOOC-Uganda Ltd, a subsidiary of the Chinese major, is seeking a 25-year license to commence oil production in the country.

 

Along with France’s Total and the UK’s Tullow PLC, CNOOC is preparing its field development plans (FDPs) to commence oil production in the country’s energy rich Albertine Graben rift, which holds estimated oil reserves of at least 2.5 billion barrels. Investments there are reported to total USD 12bn.

 

Mbabazi’s administration has agreed to construct a 30,000 barrels per day refinery complex in Kabale Sub County in Hoima District for the existing 3.5 billion barrels of oil discovered so far. The refinery will be subsequently increased to 60,000 barrels-per-day by 2018 and 120,000 by 2022.

 

The national government estimates the two projects may cost more than USD 6 billion.