Uganda to Become an Oil Producer in 2010

British oil companies Heritage Oil and Tullow oil work in exploration projects in the Albert Basin, which is located in the west of Uganda close to the Congolese border.

"In the last two to three years Uganda has been propelled to the centre stage for upstream oil in Africa," Brian Smith, Vice President of Exploration at Heritage Oil, said at a conference.

Africa has been a hotspot for oil exploration and rising production in recent years, driven by countries such as Angola. But the prospect of oil riches has fuelled border tensions between Uganda and Congo.

Smith said there was a possible 2 billion barrels of oil in the Albert Basin but much of this would not be available until around 2015, although some production could be on stream by the first quarter of 2010.

Heritage Oil says there have been 18 successful exploration and appraisal wells drilled in the basin since 2006, of which three tested at a production rate at over 12,000 barrels per day.

Since mid-2007, tensions over the border between Uganda and the Democratic Republic of Congo that runs through Lake Albert have been mounting, threatening any potential oil production in the region.

Congo says Tullow Oil and Heritage Oil, with Ugandan concessions, are working illegally in its waters. Congo last year awarded prospecting rights claimed by Tullow to a rival consortium.

But Heritage said its plans would probably not be affected.

Author: Ksenia Kochneva