rgood oil found on lake albert in uganda Good oil found on Lake...

rgood oil found on lake albert in uganda Good oil found on Lake Albert in Uganda



Efforts to explore oil in Uganda have gained momentum following the discovery of a carbon dioxide free oil well on Lake Albert by an Australian company.

An official with the Ministry of Energy, quoted by New Vision on Saturday, confirmed the finding at Mputa II, Kaiso-Tonya on Lake Albert by Hardman Oil and Gas Company.

The relevant tests on the oil were conducted last week. The oil is now at appraisal level to assess its environmental impact, ascertain its flow in the reservoir and pipeline construction and storage.

Ernest Rubondo, the assistant commissioner in charge of petroleum in the Ministry of Energy, revealed that the oil contains hydro-carbons that certify its purity as the standard commercial fuel.

"The local petroleum sector is promising despite the international crisis. All indicators show that there is a chance to get commercial wells in plenty and this is encouraging," he said.

He added that many oil wells were discovered in the Lake Albert region but they contained carbon dioxide, which is a negative element in petroleum exploration.

He did not specify the exact time-frame when drilling starts, saying, "it is a transitory process but on fast track."

He named Waraga I, Turaco I, Turaco II, Turaco III, Mputa I and Mputa II, all around Lake Albert bordering the Democratic Republic of the Congo in the east of Uganda, as the current oil exploration sites.

Rubondo said Neptune, Heritage, Energy Africa and Hardman were the firms licensed to drill and explore the oil.

He explained that another well, Turaco III, was at appraisal level and the government had injected 200,000 U.S. dollars in surveying and mapping potential oil fields, adding that drilling firms would require between 3 to 8 million dollars to install oil facilities and begin production.

He said Uganda spent 250 million dollars on petroleum products last year and the consumption rate was increasing at 6 percent per day. A barrel of oil is currently about 72 dollars.

The Discovery of oil in Uganda is expected to offset this enormous import bill and also aid the ongoing efforts to solve the power problem.

Due to change of depots procedure, the fuel price has shot up by 4.5 percent to 2,350 Ugandan shillings (1.3 dollars) at the pumps across the east African country.

Source: Xinhua