Uganda, Congo Agree to Finance Border Resurvey in Oil Region

KAMPALA, Uganda, May 12, 2008 (Dow Jones Newswires)

Uganda and Congo have agreed to finance the resurveying of their common border in the oil-rich Lake Albert basin as the two seek to end the current border dispute, Uganda's state-run Media Centre said in a statement Monday.

The statement said the agreement was reached upon by presidents Yoweri Museveni of Uganda and Joseph Kabila of Congo in Dar Es Salaam over the weekend in talks mediated by Tanzanian President Jakaya Kikwete who is also the current chairman of the African Union .

Since last year, Congo and Uganda have been embroiled in a border dispute in the Lake Albert basin, early this month, Congo accused Dublin-based Tullow Oil PLC (TUWLY) of enlisting the support of the Ugandan army to violate its borders, the Congolese government has since stripped Tullow Oil of its exploration rights on its side of the lake.

Congo and Uganda are also both still claiming ownership of the Rukwanzi Island on the southern tip of Lake Albert near block 3A operated by Canada-based Heritage Oil Corp. (HOC.T). In a joint communique at the end of the Dar Es Salaam talks, the two presidents agreed to accelerate the co-administration of the island as the border resurveying takes place.

KAMPALA, Uganda, May 12, 2008 (Dow Jones Newswires)