Uganda repossesses oil field from Tullow

May 14, 2014

Uganda said it repossessed an oilfield that belonged to Tullow Oil Plc after the period allotted to appraise the site expired, Reuters reported on May 13.

The London-listed exploration company said the field was uneconomical. Uganda expects to start pumping crude in 2017 from the Albertine rift basin along its border with the Democratic Republic of Congo.

A statement posted on a government website on May 12 said the Ngassa field, which extends beneath Lake Albert and was formerly part of Tullow's block Two, has two wells drilled in 2007 and 2009. The wells showed oil and gas deposits, although the field needed to be appraised to determine its reserves and other details.

"Time provided to complete the appraisal work on this field expired and no further extension for appraisal was given by Government," said the statement posted on the Petroleum Exploration and Production Department website.

Copyright: Reuters, 2014