Ugandan Oil Reserves Hit 2 Bln Barrels – Fin Min

Uganda’s confirmed oil reserves reached 2 billion barrels in June, the end of the 2008-09 fiscal year, up from 300 million barrels in 2006, due to rigorous exploration activities, the country’s finance minister said Thursday.

In the coming fiscal year more oil wells are expected to be drilled in the districts of Arua and Nebbi in Western Nile region and in Kanungu, southwestern Uganda, Finance Minister Syda Bumba said.
Bumba said that in the next 12 months, drilling activities are expected to be concentrated in two blocks in the West Nile region licensed to London-listed Tower Resources PLC (TRP.LN) and Heritage Oil Ltd (HOIL.LN) respectively. In Kanungu district, drilling will be carried out by Dominium Uganda Ltd.

According to the Ministry of Energy and Minerals, Uganda’s Albertine rift measures 23,000 square kilometers and is divided into nine blocks.

Following the discovery of more reserves, Uganda is now planning to build a bigger oil refinery to cater for local and regional oil needs, when the country reaches full-scale production.

However, the drilling comes at a time of renewed border tensions with Congo in the West Nile region, while Kanungu borders Congo’s mineral-rich but volatile North Kivu province.

Wll Street Journal (through Google News)