Tullow brings hope to energy-starved Uganda
May 16, 2008
Nairobi - London-based Tullow Oil on Friday announced the discovery of oil reserves in western Uganda, boosting hopes for the energy-starved east African nation.
The London-based explorer said the discovery at Taitai in the Butiaba region, near the Uganda-Congo border, indicated that the area could be a major "petroleum province."
"Downhole pressure testing and sampling has confirmed the presence of moveable 30 degrees API oil and a potential oil column of up to 80 metres, in sands above the basement play," it said in a statement.
Tullow chief Aidan Heavey said: "The discovery of oil at Taitai has proved the existence of a working petroleum system over 70 kilometres from the previous wells drilled in the Kaiso-Tonya region and further reinforces the potential of Lake Albert Rift Basin as a major emerging petroleum province."
"We are encouraged by the Taitai result and look forward to the remainder of the campaign in the Butiaba area," Heavey added.
Uganda imports around 600 million litres of crude oil per year, spending around $250 million (R1.9 billion) annually.
Demand for oil products has skyrocketed in recent years in Uganda, which has been hit by severe power shortages over recent months, due partly to a lack of generating capacity.
Yet, the new-found oil wealth has exacerbated regional tensions and deadly skirmishes involving Ugandan soldiers and troops from the Democratic Republic of Congo.
Relations between the two nations have been frosty amid mutual accusations that the each side is supporting the other's armed opposition. - Sapa-AFP
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