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Ugandan oil production to start very soon
The commercial production of Ugandan oil could start much earlier than planned after the initial exploration tests in Block 2, Bunyoro, recorded the potential for more than 30 million barrels.
According to a half-yearly Hardman Resources report, between 100-300 million barrels of oil have been established in the limited portion of the block which has been explored.
But the quantity that can be recovered for production is 30 million barrels. A barrel of oil has close to 160 litres.
Hardman Resources, an Australian company, has been exploring for oil in the block since last year. The company drilled three wells, Waraga-1, and Mputa-1 and 2. Flow tests done this year revealed that the oil was of good quality and could flow to the surface.
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Uganda has six demarcated exploration areas, running from Semliki in Fort Portal, western Uganda, to Pakwach in the north. Four of the areas are licenced to Neptune Oil and Hardman Resources. Heritage Oil has licence for two other areas.
Reuben Kashambuzi, the commissioner of the petroleum exploration and production department, said production was now possible as the issue of commercial capacity has been settled.
The joint venture partners, Hardman Resources and Tullow, have presented options to the government and are in discussions concerning the exploration, further appraisal and potential development concepts for the block. Currently, the company has to study the behaviour of the reservoir before they can determine the rate at which they will produce.
A further onshore exploration and appraisal drilling programme is to commence in the fourth quarter of this year, but drilling the Nzizi prospect is expected to start in December. The joint venture will also evaluate the options for drilling the large Ngassa prospect offshore in Lake Albert by the end of 2007.
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