Uganda signs deal with foreign companies to develop oil sector

|By:, SA News Editor

Uganda's government signs a long awaited deal with foreign oil companies to develop its oil sector, bringing to an end several years of talks and opening the way for development of the country's crude oil reserves.

The deal is based on a memorandum of understanding with Tullow Oil (TUWLF, TUWOY), Total (TOT) and Cnooc (CEO) cooperating on plans to develop the country's oil sector; the plans include a 60K bbl/day oil refinery, an oil export pipeline to Kenya's northern port of Lamu and a crude-fired electricity plant in Uganda's oil region.

An expected $15B-$17B in new investment will go toward development of up to 20 oil fields and put in place oil production infrastructure, including pipelines, processing facilities and power plants, officials say.