The government of Uganda has promised that later this year it will lift a moratorium on awarding oil prospecting licences to interested companies.
The Prime Minister, Prof. Apollo Nsibambi says that the government through the Ministry of Energy and Mineral Development had placed a hold on issuing out licences to first ensure there is adequate legal regime in place.
Nsibambi was delivering an address on behalf of President Yoweri Museveni at the ongoing 5th East African Petroleum Conference and Exhibition (EAPCE’11) at Serena Hotel in Kampala.
He said the government had finalised the oil and gas policy, as well as fine turning legislation on handling of oil revenues which will ensure orderly prospecting, exploitation and development of Uganda’s oil and other natural resources.
oil drilling in western Uganda
The government, he says will in June 2011 advertise for bids from companies interested in prospecting for oil in different oil blocks identified by the government mineral surveys.
Uganda has confirmed commercially viable oil deposits in the Albeterine graben rift of mid western Uganda, and Tullow oil is working with the government to start commercial oil production.
The President said the East Africa Community member countries had agreed to jointly prospect and exploit their oil and gas resources.
He says that as Uganda prepares to construct an oil refinery, agreements have already been reached with EAC member countries Kenya Tanzania, Burundi and Rwanda to extend the oil pipeline there.
Museveni says although only Uganda has so far confirmed commercially viable oil deposits (about 2.5 billion barrels), oil exploration efforts in Kenya, Tanzania Burundi and Rwanda have intensified so that the five EAC countries can jointly exploit their resources.
The three day conference that has attracted oil and oil servicing companies and entrepreneurs from different parts of the world is being held under the theme: “Harnessing East Africa’s Oil and Gas Potential and utilizing the Resources to Create Lasting Value.”