Uganda's Discovered Oil Reserves Hit 1 Billion Barrels

KAMPALA, Uganda (Dow Jones Newswires), Jan. 2, 2009

Oil reserves discovered so far on the Ugandan side of the Lake Albert rift basin are estimated at 1 billion barrels, the New Vision newspaper reports Thursday.

The state-owned paper quoted Nadheem Hashmi, the well engineering manager of U.K.-based Tullow Oil PLC as saying that with many more prospects to drill in the Butiaba region and across the base, the commercial threshold for development would be exceeded.

"The region has about 1 billion reserves of crude oil, this makes the project commercially viable," he was quoted as saying.

Tullow oil has assigned a team to make a commercial development plan for the whole basin, according to the newspaper.

Since 2006, Tullow oil and Heritage Oil Corp. have been drilling a number of oil wells on the Ugandan side of the Albertine rift.

Uganda is set to start on an early oil production scheme in the fourth quarter of 2009 with an initial production of around 5,000 barrels a day. Uganda expects to reach full-scale oil production in the next five to six years.  

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