ugandan talks to boost east african oil riches

Business Day (Johannesburg)

February 25, 2005
Posted to the web February 25, 2005

Michael Wakabi
Johannesburg

EAST Africa's petroleum potential will come under scrutiny at a three-day regional petroleum conference in Entebbe, Uganda, on March 2-4.

Representatives from the government, oil multinationals and indigenous oil producers, as well as geoscience institutions and petroleum services companies are expected to attend.


A follow-up of an oil exploration conference in 2003, next week's meeting comes on the back of higher oil prices on the international market and the effect these are likely to have on east Africa's fragile economies.

Rapid economic expansion in China is expected to drive oil prices higher over the next decade, and east Africa has adopted a strategy of searching for internal petroleum resources through intensified exploration and lowering the cost of entry for international players.

In Entebbe national petroleum exploration and production authorities are expected to put on the table available opportunities and terms of engagement with investors.

At least three oil companies - Heritage Oil and Gas, Hardman Resources and Energy Africa trading as Tullow Oil Group - are exploring for oil in Uganda. Tullow acquired Energy Africa in SA and half of Energy Africa Gabon for a total of $570m last May.

Last month Heritage Oil and Gas reported less than satisfactory results on oil quality from its Turaco-3 test well in Uganda. Test samples contained a high level of carbon dioxide, rendering the find undesirable. But Ugandan officials are confident that the country still holds strong promise for oil.

The country has attracted $30m of the $50m invested by oil prospectors in east Africa over the past two years, with Kenya and Tanzania accounting for the rest.

Relevant Links

East Africa
Southern Africa
Uganda
South Africa
Petroleum


Uganda has documented at least three oil and gas seeps in the Lake Albert area, and oil films have been seen on the Nile upstream of the lake.

Conference delegates will have the opportunity to visit sites in Kenya's Rift Valley and areas of northern Tanzania.

http://allafrica.com/stories/200502250348.html