‘Kenya oil find poses no threat to Uganda’

Kampala A senior ministry of energy official has told MPs that the recent discovery of oil in Kenya is no threat to Uganda’s sector even as the country was warned by the UN that weak legislation could impede full enjoyment of benefits accruing from exploitation of the resource.

Friday, June 29, 2012

Kampala A senior ministry of energy official has told MPs that the recent discovery of oil in Kenya is no threat to Uganda’s sector even as the country was warned by the UN that weak legislation could impede full enjoyment of benefits accruing from exploitation of the resource.Speaking at an ongoing conference on the proposed oil laws at the Speke Resort in Munyonyo where Parliament is in retreat, Mr Kabagambe Kaliisa said that the Ugandan government was not caught unawares by the Kenya discovery."The Albertine Graben stretches through Uganda to Ethiopia and we knew that at one point countries within the basin will discover oil and one time during a seminar in Mombasa we advised the Kenyans to explore for oil in the Turkana,” he said.Early this year, Tullow Oil, which is carrying out oil exploration in Kenya, announced hitting 20 metres of net oil at Ngamia-1 in Kenya’s Turkana County.The same company later encountered a total net oil pay in excess of 100 metres depth across multiple reservoir zones in the Ngamia-1 well, over a gross oil-bearing interval of 650 metres. But Mr Kaliisa said the discovery is instead good news for Uganda: "There was no unexpected news in Kenya hitting oil because it was bound to happen and if there’s oil in Kenya even the economies of scale for Uganda increase.” The two-day Munyonyo meeting, organised by the Ministry of Energy with support from the Norwegian government, is to enhance MPs’ appreciation of the oil sector and equip them for the forthcoming debate and consideration of the oil bills.