Positive results for Chinese Petroleum in Uganda oil

Attempts by the Chinese Petroleum Company to exploit Uganda's oil resources have greatly yielded positive results. The company's overseas arm, the China National Oil and Gas Exploration and Development Corporation (CONDC), March this year sent a research team that visited the Semliki, lake Albert basin and in the Kibiro and the Pakwach basins.
The commissioner for Petroleum Exploration and Exploitation (PEPD), Rueben Kashambuzi said the research team did a survey in the field and collected samples to do an interpretation. He said the Chinese invited the PEPD staff to Beijing to witness the final research report. "Our staff visited China from May 11-18. They visited a number of places, the company's production areas, research institutions and the headquarters. They confirmed our potential."
He said the Chinese compared particular basins with resemblance to Uganda's. "Basins which were formed in the same time frames appear always to be the same."

A mature basin in China has similar characteristics with Uganda's. Chances are that the unexploited basin of similar sediment patterns would have as much potential. This is what we call analogy in this field," he explained. "Their basin is a tertiary rift and the same applies to ours. The two basins have the same sediment patterns, the oil seeps and so they came up with a very positive report. What Uganda is really waiting for is a drill to test the structures. We now have everything required apart form that one," he added.
Kashambuzi however noted the geographical problem that is affecting mainly the transportation of equipment. "This is one of the impediments to the country's quick truck in oil exploitation. Very many countries are offering acreage to potential investors. We anticipate that many investors will run to a country without such costs," he said.

Meanwhile, Heritage Oil and Gas, the company that was meant to test drill in the Semliki is seeking a merger with another interested party after failing to reach a compromise with a Chinese company ZEP. The company had accepted to take equity in the venture. "They were to buy a rig, bring technicians to work on it and even drill. As they were about to sign the contract, ZEP pulled out," Kashambuzi said they gave no reasons for the act.
He further explained that Heritage Oil and Gas was going to use its own resources or find other parties. "It is expected that by end of June, the company's position concerning drilling will be made clear to government. The same will apply to CNODC, whether they are applying for a license in the Albertine Graben," he said.
The department is also in the final phase of preliminary investigations intended to acquire data on the Rhino Camp basin, the fifth and last exploration area of the East African rift valley system. Energy minister Syda Bbumba recently said government was rapidly consolidating the mining sector.