Government set to sell off 45000 barrels of crude oil - Business | NTV

Government set to sell off 45000 barrels of crude oil

By Christine Kasemiire

Friday November 1, 2019

 

Government is set to sell off 45000 barrels of test crude oil seated at Kasemene camp run by Tullow.

According to Mr Ibrahim Kacita, corporate affairs manager, Uganda National Oil Company (UNOC), government is in the final stage of selling crude oil obtained during the testing stages of oil production.

“Instead of burning the crude oil found, we decided let’s try and see how we can monetize it. We embarked on searching for a buyer. We advertised and got prospective buyers from whom we evaluated the buyer and decided that they are the best candidates,” he said declining to reveal the identity of the buyer who will be revealed by the minister in a short while.

The crude oil, UNOC says can be transformed into heavy fuel oil that can be used for electricity production.

Mr Kacita also adjourned announcing of the mode of transportation of the crude oil as well as its monetary value saying the minister of energy will reveal the information.

Important to note is that the country has not started commercial production of oil.

Uganda has a capacity to produce 6b barrels of crude oil with only 1.4b recoverable.