Uganda’s crude production plans are now in progress after the cabinet has approved the issuance of oil production licences to France’s Total, Reuters reported. The licenses cover the Ngiri, Jobi-Rii, and Gunya oil fields in the Albertine rift basin, the area along the country’s border with the Democratic Republic of Congo. According to The East African, the licenses will be authorized for 25 years with additional five years allocated for possible extensions.
The permits were previously delayed over taxation and field development plan disputes. In addition, lacking crude pipeline infrastructure has further postponed the production process.
Total is the second oil firm to be obtaining a production license after China’s CNOOC.
Britain’s Tullow Oil, which also co-owns fields with Total and CNOOC, has also applied for production licenses, however, it has not yet received the approval.
Meanwhile, Uganda has agreed with Tanzania to develop a pipeline to the Indian Ocean port of Tanga, in order to ease the process of exporting Uganda’s crude reserves, which are assessed at about 6.5b barrels.