Fresh Uganda Oil Find ‘Africa’s Biggest’
By The Times
14 Jan 2009 "The Times" - -Heritage Oil announced details of a large oil discovery in Uganda yesterday, which the company claimed could be the largest onshore discovery in sub-Saharan Africa.
Heritage said that its latest discovery – Giraffe1 – in the Lake Albert region, could total at least 400 million barrels of oil.
However, Paul Atherton, chief financial officer, told The Times that the wider field it was developing, dubbed Buffalo-Giraffe, had several “billions of barrels of oil in place”, although it was unclear how much of this would be recoverable.
He said that the field, which is 9,000 square kilometers in size – or six times the size of Greater London – was unquestionably the largest onshore discovery made in sub-Saharan Africa in at least 20 years, possibly ever.
Mr Atherton said that of the 18 wells the company had drilled in the basin so far, all had produced oil. “Clearly the entire basin is full of oil,” he said. “It’s a world-class discovery, the most exciting new basin in Africa in decades.”
Previously, the largest onshore fields discovered in sub-Saharan Africa were at Rabi-Kounga in Gabon, where 900 million barrels were found in 1985, and at Kome in Chad, where 485 million barrels were found in 1977.
Mr Atherton said that it would take at least another three years to start commercial production. The crude could be exported by road or rail, he said, but analysts believe that the most practical solution would be to build an 806-mile pipeline to take it to Kampala, Uganda’s capital, and then the Kenyan coast. The pipeline would need to be heated and designed to traverse swampy and mountainous land. It would cost an estimated $1.5 billion (£1 billion) to complete.
Heritage and its partner Tullow Oil, which also has a 50 per cent equity stake in the project, would need to demonstrate that the field could produce at least 400 million barrels of oil to justify the cost of building such a pipeline. Richard Griffith, an Evolution Securities analyst, said the latest discovery “thrashed” this commerciality threshold.
See Also - Uganda : Pressure Mounts To Make Public Oil Agreements:Uganda's oil discovery is already attracting major players like Italian oil giant Eni Spa, U.S. Exxon Mobil, France's Total and of recent the China National Offshore Oil Company. The country does not have the funds to finance the production of oil and instead signed agreements with oil giants spelling out how the revenue will be shared with investors willing to fund the production phase. The companies will build an oil refinery in Uganda and an oil pipeline to the Indian Ocean. This will enable the landlocked country to sell its estimated two billion barrels of crude oil internationally
Uganda's oil contracts leaked - a bad deal made worse: The repeated claims by the Ugandan government and the oil companies that Uganda has received a very good deal and the best in the region are not only a fiction, but were reliant on the real terms of the contracts being kept secret. While the contracts will deliver vast profits to Tullow Oil and Heritage Oil, the contracts will prevent the Ugandan people from receiving their due benefits.
Oil extraction and the potential for domestic instability in Uganda: The paper identifies and discusses in detail three sources of domestic volatility that may arise as a result of oil development.
Uganda: Oil could cause war : The attacks are by armed gangs suspected to be rebels of the FDLR, LRA, and the Allied Democratic Forces (ADF). In the ongoing campaign in DR Congo, President Joseph Kabila is being criticised for failing to restore peace in this vital area.
14 Jan 2009 "The Times" - -Heritage Oil announced details of a large oil discovery in Uganda yesterday, which the company claimed could be the largest onshore discovery in sub-Saharan Africa.
Heritage said that its latest discovery – Giraffe1 – in the Lake Albert region, could total at least 400 million barrels of oil.
However, Paul Atherton, chief financial officer, told The Times that the wider field it was developing, dubbed Buffalo-Giraffe, had several “billions of barrels of oil in place”, although it was unclear how much of this would be recoverable.
He said that the field, which is 9,000 square kilometers in size – or six times the size of Greater London – was unquestionably the largest onshore discovery made in sub-Saharan Africa in at least 20 years, possibly ever.
Mr Atherton said that of the 18 wells the company had drilled in the basin so far, all had produced oil. “Clearly the entire basin is full of oil,” he said. “It’s a world-class discovery, the most exciting new basin in Africa in decades.”
Previously, the largest onshore fields discovered in sub-Saharan Africa were at Rabi-Kounga in Gabon, where 900 million barrels were found in 1985, and at Kome in Chad, where 485 million barrels were found in 1977.
Mr Atherton said that it would take at least another three years to start commercial production. The crude could be exported by road or rail, he said, but analysts believe that the most practical solution would be to build an 806-mile pipeline to take it to Kampala, Uganda’s capital, and then the Kenyan coast. The pipeline would need to be heated and designed to traverse swampy and mountainous land. It would cost an estimated $1.5 billion (£1 billion) to complete.
Heritage and its partner Tullow Oil, which also has a 50 per cent equity stake in the project, would need to demonstrate that the field could produce at least 400 million barrels of oil to justify the cost of building such a pipeline. Richard Griffith, an Evolution Securities analyst, said the latest discovery “thrashed” this commerciality threshold.
See Also - Uganda : Pressure Mounts To Make Public Oil Agreements:Uganda's oil discovery is already attracting major players like Italian oil giant Eni Spa, U.S. Exxon Mobil, France's Total and of recent the China National Offshore Oil Company. The country does not have the funds to finance the production of oil and instead signed agreements with oil giants spelling out how the revenue will be shared with investors willing to fund the production phase. The companies will build an oil refinery in Uganda and an oil pipeline to the Indian Ocean. This will enable the landlocked country to sell its estimated two billion barrels of crude oil internationally
Uganda's oil contracts leaked - a bad deal made worse: The repeated claims by the Ugandan government and the oil companies that Uganda has received a very good deal and the best in the region are not only a fiction, but were reliant on the real terms of the contracts being kept secret. While the contracts will deliver vast profits to Tullow Oil and Heritage Oil, the contracts will prevent the Ugandan people from receiving their due benefits.
Oil extraction and the potential for domestic instability in Uganda: The paper identifies and discusses in detail three sources of domestic volatility that may arise as a result of oil development.
Uganda: Oil could cause war : The attacks are by armed gangs suspected to be rebels of the FDLR, LRA, and the Allied Democratic Forces (ADF). In the ongoing campaign in DR Congo, President Joseph Kabila is being criticised for failing to restore peace in this vital area.
posted by Hanan Elbadry at 11:01 PM
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