Flanked by the rolling green hills and steep, jagged escarpments of the western Rift Valley, an oil rig prepares to drill deep into Ugandan earth.
Better known for its myriad conflicts in recent years, Africa Great Lakes region has become one of most exciting frontiers in a hunt for oil on the continent that is increasingly focused away from traditional West African sources.
Tullow Oil has three blocks in the Albertine basin spanning Uganda and Democratic Republic of Congo, two in 50-50 partnership with Canada's Heritage Oil.
At Tullow's drilling site, workers in hard hats lug heavy machinery and steel girders up a rig, cast against dramatic blue-green mountains. They are changing a drill to go deeper.
"We've gone through several sections with oil shows," says Tullow geologist John Birch over the clanging of metal and buzz of a generator. "This takes us to the bottom of the well."
The UK-based explorer says its seismic data suggests the region's reserves could be a billion barrels -bigger than a find it unveiled last month of up to 600 million in Ghana. Ugandan exploration remains at an early stage: between them, Tullow and Heritage have drilled six wells. "We've only touched the tip of the iceberg," Heritage Oil's Uganda manager Bryan Westward says. "We think there's a world class find, but until we've drilled 100 wells we'll never know."
Sweet oil
Heritage drilled in one block down to three kilometres and found light crude flowing at 14,000 barrels per day. Tullow struck oil in all five wells it drilled.
"It's all very nice sweet oil. We wouldn't have to have a heated pipeline if we had enough to export," Westward says.
Assuming they find enough, the companies will construct a pipeline to the Kenyan port of Mombasa. Meanwhile, they are building a mini-refinery capable of supplying local markets with diesel, paraffin and aviation fuel, but not petrol.
Uganda's President Yoweri Museveni is keen for the country to become self-sufficient before exporting, but executives say there should be enough to supply Kenya and Tanzania too.
"It's going to change the dynamics of east Africa," says Tullow Uganda manager John Morley.
Tullow secured a rig this month to drill deeper to 4-7 kilometres, where executives believe the best crude lies. As with all such ventures, there are environmental challenges. Tullow is drilling in a protected nature reserve that is home to precious species including leopards, hippos and black-and-white colobus monkeys.
The Wildlife Conservation Society warned in February that exploration was taking place in a very sensitive biodiversity zone likely to be damaged irreparably unless well managed.
"All the drill pads, access roads, boat traffic - it has an impact," says Tullow environment officer Ashleigh Olsen as her jeep sweeps past grazing antelope. "And if there was a spill on the lake, it would be a disaster."
Olsen says the company is taking precautions to avoid spills. They say they are using the best technology available to minimise impact, sealing off used wells and shipping out waste.
Great expectations
If big oil is found, the next question will be how to start production. Tullow produces a modest 70,000 barrels a day. For the smaller Heritage, much depends on finance.
"My company isn't big enough to take this to production," says Westward. "We need more money, or we have to hope one of the majors buys us out."
Heritage has so far had not been approached. "They're all sitting on the wall," says Westward. Tullow this month quashed rumours it would buy Heritage. The inevitable hype over Ugandan oil leaves high expectations.
"A people who have been able to grow at six per cent while without oil, can grow even faster... when we have oil," Finance Minister Ezra Suruma said, concluding last month's budget.
Better known for its myriad conflicts in recent years, Africa Great Lakes region has become one of most exciting frontiers in a hunt for oil on the continent that is increasingly focused away from traditional West African sources.
Tullow Oil has three blocks in the Albertine basin spanning Uganda and Democratic Republic of Congo, two in 50-50 partnership with Canada's Heritage Oil.
At Tullow's drilling site, workers in hard hats lug heavy machinery and steel girders up a rig, cast against dramatic blue-green mountains. They are changing a drill to go deeper.
"We've gone through several sections with oil shows," says Tullow geologist John Birch over the clanging of metal and buzz of a generator. "This takes us to the bottom of the well."
The UK-based explorer says its seismic data suggests the region's reserves could be a billion barrels -bigger than a find it unveiled last month of up to 600 million in Ghana. Ugandan exploration remains at an early stage: between them, Tullow and Heritage have drilled six wells. "We've only touched the tip of the iceberg," Heritage Oil's Uganda manager Bryan Westward says. "We think there's a world class find, but until we've drilled 100 wells we'll never know."
Sweet oil
Heritage drilled in one block down to three kilometres and found light crude flowing at 14,000 barrels per day. Tullow struck oil in all five wells it drilled.
"It's all very nice sweet oil. We wouldn't have to have a heated pipeline if we had enough to export," Westward says.
Assuming they find enough, the companies will construct a pipeline to the Kenyan port of Mombasa. Meanwhile, they are building a mini-refinery capable of supplying local markets with diesel, paraffin and aviation fuel, but not petrol.
Uganda's President Yoweri Museveni is keen for the country to become self-sufficient before exporting, but executives say there should be enough to supply Kenya and Tanzania too.
"It's going to change the dynamics of east Africa," says Tullow Uganda manager John Morley.
Tullow secured a rig this month to drill deeper to 4-7 kilometres, where executives believe the best crude lies. As with all such ventures, there are environmental challenges. Tullow is drilling in a protected nature reserve that is home to precious species including leopards, hippos and black-and-white colobus monkeys.
The Wildlife Conservation Society warned in February that exploration was taking place in a very sensitive biodiversity zone likely to be damaged irreparably unless well managed.
"All the drill pads, access roads, boat traffic - it has an impact," says Tullow environment officer Ashleigh Olsen as her jeep sweeps past grazing antelope. "And if there was a spill on the lake, it would be a disaster."
Olsen says the company is taking precautions to avoid spills. They say they are using the best technology available to minimise impact, sealing off used wells and shipping out waste.
Great expectations
If big oil is found, the next question will be how to start production. Tullow produces a modest 70,000 barrels a day. For the smaller Heritage, much depends on finance.
"My company isn't big enough to take this to production," says Westward. "We need more money, or we have to hope one of the majors buys us out."
Heritage has so far had not been approached. "They're all sitting on the wall," says Westward. Tullow this month quashed rumours it would buy Heritage. The inevitable hype over Ugandan oil leaves high expectations.
"A people who have been able to grow at six per cent while without oil, can grow even faster... when we have oil," Finance Minister Ezra Suruma said, concluding last month's budget.
Via: Gulf News
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