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Uganda News: Tullow Oil to invest in Uganda's oil industry

Tullow Oil signs a new production sharing agreement with Uganda's government.
Tullow oil uganda 2012 2 3Enlarge
Tullow Oil has signed a deal with Uganda. Here, Tullow Oil company technician Joachim Vogt (L) describes the properties of the oil discovered on an offshore oil platform off the coasts of the French overseas department of Guiana. (Jody Amiet /AFP/Getty Images)

NAIROBI, Kenya — Months of unseemly wrangles have delayed Uganda's much-touted oil production but now it is set to begin.

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Tullow Oil, a spectacularly successful oil exploration company that has discovered large reserves in Uganda and Ghana in recent years, says that it has signed production sharing agreements with Uganda's government paving the way for a $10 billion investment in the country's nascent oil industry.

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The next step will be for Tullow, a relatively small company (in the multi-billion dollar world of oil), to finalize its new partnership with France's Total and China's CNOOC that will enable the building of a refinery and an export pipeline from the Lake Albert oil fields.

It is estimated there may be as much 2.5 billion barrels of oil, enough crude to supply all of Uganda's domestic needs with more left over for export to neighboring countries.

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http://www.globalpost.com/dispatches/globalpost-blogs/africa/uganda-news-tullow-oil-invests-uganda-oil-industry