Uganda Oil Deposits May Be Double Estimates, Presidency Says

Uganda may hold deposits of as many as 6 billion barrels of oil, more than double the current estimate, according to the office of the nation’s presidency.

“Some analysts estimate that Uganda’s Albertine Graben may hold more than 6 billion barrels of oil,” the presidential office said in an e-mail statement yesterday. The estimate is well above the discovered deposits with a potential of 2.5 billion barrels, it said.

East Africa’s third-biggest economy still has four unexplored oil blocks after it awarded concessions to five, according to the statement. The country plans to produce 100,000 to 150,000 barrels of oil a day, which is expected to spur economic growth, the office said.

Uganda is scheduled to become an oil producer next year when Tullow Oil Plc (TLW) is expected to start pumping crude and gas from the Lake Albert Basin. The country has an estimated 2.5 billion barrels of oil, with about 1 billion barrels in proven reserves, according to Tullow.

To contact the reporter on this story: Fred Ojambo in Kampala via Nairobi at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.

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