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Uganda posed to auction 4 oil blocks in 2013

28th March 2012

Four Ugandan oil-rich blocks are set to be opened for exploration in 2013

Bidding will open in 2013 to access Ugandan oil reserves

Uganda is likely to auction four blocks for oil exploration early next year, the chairman of the Uganda Chamber of Mines and Petroleum told an energy conference on Wednesday.

London-listed Tullow Oil, which discovered substantial deposits in the east African country in 2006, expects to start small production late this year, Reuters reported.

"Four blocks and 10,000 km sq of relinquished acreage will be auctioned, most likely in the beginning of next year," Chairman Elly Karuhanga said.

Last month, the government introduced a long-awaited bill to regulate the east African country's nascent oil sector as it prepares for commercial production.

"New progressive laws are being made, and a round of licensing will be announced thereafter," Karuhanga said.

Tullow says it has found 1.1bn confirmed barrels of oil and believes there are 1.4bn left to find.
Earlier this year, it closed a USD 2.9bn deal to bring in French oil major Total and Chinese group CNOOC as partners to develop its fields.

The group will now focus on their USD 10bn plan to start pumping oil from huge reserves discovered on the shores of Lake Albert. They expect to ramp up to a major production phase in 2016.

Other companies holding interests in Ugandan blocks are Ophir Energy, which got two blocks with the acquisition after acquiring Dominion Petroleum, and Tower Resources.

 

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