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Uganda plans to start pumping oil by 2022, later than a previous target for 2021, due to lack of infrastructure and disagreements over taxes and projects with operators.
Uganda is now planning to start production by 2022 from the Kingfisher and Tilenga Blocks, Energy Minister Irene Muloni told Reuters on the sidelines of an energy conference in India .
Uganda is one of the hotspots of oil development in sub-Saharan Africa. A newcomer on the oil scene, the landlocked country has welcomed Tullow Oil, CNOOC and Total into its oil-rich regions. The country's government plans to invest $ 15 billion to $ 20 billion in the oil industry over the next three to four years and plans to build a pipeline to the Tanzanian coast and a refinery to revive the oil industry.
Uganda will first have to build a pipeline to export its oil and refinery before starting to produce oil, Minister Muloni told Reuters on Wednesday.
A final investment decision for the refinery would be made in September 2020 and should be ready three years later, she said.
The Uganda-Tanzania pipeline is expected to extend from Hoima (Uganda) to the Tanzanian port of Tanga. Funding for the project will come from 70% of the Tanzanian and Ugandan governments, with the remaining 30% going to Tullow Oil and CNOOC. In France, Total is also co-owner of part of the Ugandan oil fields and could negotiate a stake in the gas pipeline project. However, the Ugandan government said in December that the pipeline could be delayed, as its investors demanded a higher tariff, above the $ 12.20 per barrel price originally agreed.
Related: oil rises despite rising oil, product stocks
In its 2018 results released on Wednesday, Tullow Oil said the
The social and environmental impact badessments (ESIAs) of Tilenga and Kingfisher have been submitted to the National Environmental Management Authority for review, and their approval is expected in the first half of the year. this year.
"Project funding for the pipeline is progressing well with the development of the current financial model. In the first half of 2019, JV partners plan to enter into key commercial, technical and land tenure agreements with the Ugandan and Tanzanian governments, as well as the submission of an ESIA for the pipeline to both governments, said today Tullow Oil.
By Tsvetana Paraskova for Oilprice.com
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