Tullow Plans to Begin Oil Production in Uganda Amid `Challenges’

Posted January 11, 2011 by Ugandan Diaspora News Team in Business ~ 3,196 views


Tullow Oil Plc will start oil production in Uganda in 2012 and not this year because plans to meet the earlier target are “quite challenging,” said Brian Glover, the company’s manager in the East African country.

Glover didn’t elaborate in comments to reporters at a conference for the company’s suppliers in the capital, Kampala.

Tullow, the U.K. explorer with the most licenses in Africa, paid about $1.5 billion in July to Heritage Oil Plc for its interests in Block 1 and 3A in the Lake Albert basin. Uganda has delayed final approval on the purchase of the stakes, saying it is owed $404 million in capital gains tax from the transaction.

Tullow’s investment in the East African country will increase to about $10 billion over the next decade, making it the region’s biggest investment project, Glover said at the conference. The amount will increase from the $800 million spent so far on oil exploration in Uganda, Glover said.

Tullow explored 37 wells in the country, 36 of which were found to be viable, Glover said. The company discovered 1 billion barrels of recoverable oil, with another 1.5 billion yet to be found, according to the company. Uganda’s oil reserves may place the country among the top 10 African producers and 50 biggest producers in the world, it says.

The company wants to bring in China National Offshore Oil Corp. and Total SA as partners to develop the country’s oil industry.

A refinery planned by Tullow has the potential to reach production of 200,000 barrels of oil per day, he said.

To contact the reporter on this story: Fred Ojambo in Kampala at

To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at

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Ugandan Diaspora News Team

Ugandan Diaspora News Online is an independent, non political news portal primarily aimed at serving Ugandans who work and reside outside Uganda. Our aim is to be a one stop shop for everything Ugandan and the celebration of our Ugandan heritage.


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