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‘No oil’ in West Nile

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by ByaseL, Jun 17, 2009.

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    ByaseL JF-Expert Member

    Jun 17, 2009
    Joined: Nov 22, 2007
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    Kuna watu wanadai Uganda ina mafuta kama Saudi Arabia, nasema ndio Uganda kuna mafuta lakini sio kiasi cha kufikia Saudi Arabia. Soma habari hii.

    Angelo Izama

    In a mixed set of fortunes, two companies looking for oil in different parts of the country yesterday announced good and bad news.

    Whereas Neptune Oil made public that it had failed to find oil in its first well in West Nile, Tullow Oil said it had discovered oil deposits in Kigogole-3, Butiaba and declared it a future oil production site.

    Announcing the flop in West Nile, Mr Peter Kingston, the chairman of Tower Resources, the company that owns Neptune, said: “The result is very disappointing for everyone involved, not least the people of West Nile.”

    The dry Iti-1 exploration well is the second set of bad news in the sector. Before Tullow made the Kigogole-3 discovery, it had announced in May that it was abandoning the Awaka-1 well in the Butiaba area after encountering water-logged sands.

    In a statement posted on its website on Monday, Tower said it would review overall data before drilling elsewhere in its licence area.
    “The lack of reservoir at this location could not justify further testing or the immediate move to drill a second well” the Tower statement said.
    Mr Kingston said: “However this is a very large licence and there is every chance that far better reservoir sand quality can be found elsewhere [in the license area]”.
    Tower Resources has not said when it would re-commence drilling at another location.
    “A complete re-evaluation of the well data, combined with all other available technical data, will be undertaken as a priority to determine a more prospective location for a second well,” it said instead.

    Neptune Country Director Maryline Hill, however, remains hopeful that oil could be found at the other two oil wells in Arua particularly Logboo and Nsambya.
    “It is true we have not found the oil and we are saddened by the story. But the locals should not lose hope because we still have the remaining oil wells,” she said.
    Besides Uganda’s south western border, oil is believed to be present in the entire stretch of the Albert Rift Valley.

    Heritage Oil and Gas one of the other exploration company announced its biggest find in the northern district of Amuru at the beginning of the year.
    Uganda would like to buck the established trend of other African countries exporting crude by establishing its own refinery.
    A government team is currently conducting a study on what size of refinery the country’s reserves can support.