Uganda: Oil exploration investment hits $1.5 billion

KAMPALA Uganda -- Oil companies operating in Uganda's Lake Albertine Rift basin have invested at least $1.5 billion in oil and gas exploration since 2006, and investments are expected to keep increasing as the country moves from exploration to the development phase, Uganda's energy and minerals ministry said Thursday.
In a report, the ministry said the investments have led to the drilling of at least 55 oil wells with 51 of these yielding oil discoveries in three oil blocks on the Ugandan side of the Lake Albertine rift basin.
"This (exploration) represents a success rate of over 92%," the ministry said." Government will continue to pursue investment promotion in the sector with the aim of undertaking further exploration in order to increase the amount of exploitable oil and gas."
The country is expected to call for bids for at least five unlicensed oil blocks early next year, as well as at least 10,000 square kilometers of acreage, relinquished by the current players when the necessary oil legislation have been formulated, the ministry said.
U.K.-based Tullow Oil PLC, which operates the three blocks, is currently in advanced stages of selling two thirds of its stakes in the blocks for $2.9 billion to France's Total SA  and China's CNOOC Ltd.\).