Uganda becomes oil producer
After years of painstaking exploration, Ugandans heard what they have been longing to hear - the discovery of oil in their country. The country's President, Yoweri Museveni, announced to the national.The discovery of oil could start Commercial production around in 2010, says the President.
Uganda's search for oil, which cost companies at least US$ 70 million, started in the country's western regions, with the oil blocks of Waranga 1, Waranga 2 and Mputa in 1989. An Australian oil exploration company, Hardman Resources Ltd, made the discoveries in June this year. Block 2, which is located in the northwest of the country and covers the northern part of Lake Albert and the surrounding onshore area. The most recent discovery, Waraga, is similar to the original discovery well Mputa, in that it has essentially three zones of oil bearing sands, according to the company.
With initial production of 6,000 to 10, 000 barrels a day, This will put Uganda among Africa's oil producing nations, chief among them Nigeria, Equatorial Guinea, Angola and Libya.
Minister for Energy and Minerals Development Daudi Migereko, the government As part of its move to develop the mining industry, has signed a $5-million contract with South African-based Fugro Airborne Surveys to conduct mineral surveys among others.
