Frances Total SA will retain its oil license in northern Ugandas Lake Albertine Rift Basin after the company made a discovery in the area last month
According to a report on Wall Street Journal (WJS) the discovery of oil in that part of Uganda will be a major boost for Total, whose exploration license for that block, known as 1A, was due to expire in February this year.
Uganda’s state-run Petroleum Exploration and Production Department assistant commissioner Honey Malinga told WSJ that the discovery would also boost the size of the country’s crude reserves, currently estimated at 3.5bn barrels.
Malinga said, “Total will automatically retain the license. We have asked them to apply for an appraisal and production license for the block.”
Total spokesman, Florent Segura, said the discovery required further appraisal to determine its potential. Details of the size of the discovery were expected in the next few weeks.
Total, which co-owns the license with China’s Cnooc and UK-listed Tullow Oil, had drilled three dry wells in the block before striking oil in the fourth late last month.
