The government yesterday signed a commercial crude oil production deal with foreign oil companies prospecting for oil in the Albertine Graben.
The companies that inked the deal at State House, Entebbe last night were UK’s Tullow Oil Plc, China’s Offshore Oil Corp (CNOOC) and the French firm Total E&P. With the Memorundum of Understanding now out of their way, the companies that have been prospecting for oil can now embark on the new journey of production.
Exact details of the MoU were still unknown by press time although the government is expected to make a formal announcement today.
The government was represented by officials from the Ministry of Energy, Finance, Attorney General and Solicitor General. President Museveni was also said to be in the meeting attended by top chief executives of the three oil companies.