Workers undertake the first flaring test at a well in western Uganda. The country says it is on tract to start production in 2018. Photo/File
Following the agreement announced by the Ministry of Energy on Wednesday, Uganda now expects commercial extraction of its 1.8 billion barrel oil resource to begin in early 2018 from the King Fisher field.
Although CNOOC operates the King Fisher field, Tullow Oil and Total Exploration and Production Company own equal shares in the field. The partners will invest $2 billion to develop the field in preparation for actual production.
The government has also announced it will participate in the King Fisher licence with a 15 per cent share once production begins.