Oil Companies May Spend $8 Billion to Start Output in Uganda

31 Aug 2016   Uganda

Government expects Tullow, Total, Cnooc to drill 500 wells Companies expected to start crude production in 2020 Uganda expects three oil companies to invest $8 billion in the East African nation before they start producing crude in 2020, Energy Minister Irene Muloni said. The government on Tuesday issued production licenses to London-based Tullow Oil Plc and Total SA of France and said that together with Cnooc Ltd., the state-owned Chinese producer, the country expects to pump as much as 230,000 barrels per day of crude. “The companies are expected to invest over $8 billion in the infrastructure required for all the production licenses,” Muloni said in the capital, Kampala. “This investment will be for the drilling of about 500 wells, construction of central processing facilities and feeder pipelines, among others.” Uganda discovered oil in 2006 and has an estimated 1.7 billion barrels of recoverable resources. Cnooc, the first company […]

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