Uganda Oil Exploration: Minister Says Expects First Oil Production To Be Delayed To 2022

Uganda expects to begin producing oil in 2022, its energy Minister, Irene Muloni, said on Wednesday, indicating a slight delay from the east African country’s revised target of 2021.

Uganda discovered crude reserves more than 10 years ago but production has been repeatedly delayed by disagreements with field operators over taxes and development strategy.

A lack of infrastructure such as a transportation pipeline and a refining facility have also held up output.

In April last year, Uganda signed a deal with a consortium, including a subsidiary of General Electric, to build and operate a 60,000 barrel per day refinery that will cost between $3 billion and $4 billion. The refinery is expected to be operational by 2023.

Muloni said land-locked Uganda, which imports refined fuel, would announce its next exploration licensing round in May.