"We've struck oil, Uganda Minerals Minister announces" (Source: Mining Weekly)

By: Martin Creamer
Published: 5 Feb 08 - 18:23

Central African state Uganda had struck oil and production would begin in June, Ugandan Mineral Development Minister Dr Cos Kamanda Bataringaya told the Mining Indaba in Cape Town on Tuesday.

Bataringaya told Mining Weekly Online that Uganda envisaged seven oilfields and in the initial "small area" where mid-year production would begin contained more than 300-million barrels of oil.

The area would production would begin was in western Uganda.

Prospective investors were being given access to seismic data and carried out exploration, which had led to the discovery and exploitation of hydrocarbons in the country.

Calculations had been done on volumes in each of the prospective oilfields.

Concessions had initially been granted on a first come, first served basis.

The Ugandan Cabinet had last week passed a national oil and gas policy and the other areas not yet licensed would be awarded on the basis of competitive private-sector bidding.

Bataringaya drew potential investors' attention to the macroeconomic stability of Uganda and the zero-rating on equipment and exploration costs.

The country had modernised its mining legislation and fiscal regime in order to improve its investor friendliness and was also encouraging exploration for cobalt, copper, iron-ore, nickel, platinum, tin and phosphates.

A master of business administration and a medical doctor, Bataringaya has been Minerals Minister for the past eight years.