Uganda+Petroleum

==Investments In Oil And Natural Gas By Chinese Companies Such As China's National Offshore Oil Corporation's (CNOOC) Investment In Kingfisher Field In Lake Albert Are Highly Likely To Continue For The Next Five Years==

Executive Summary:
China's National Offshore Oil Corporation (CNOOC) is starting the development of the Kingfisher Field in Lake Albert basin for USD 2 billion. Uganda's discovered oil reserves in 2006 are fourth largest reserves in Sub-Saharan Africa, and CNOOC quickly won the rights to start developing in Kingfisher Field in Lake Albert, which contains 3.5 billion barrels of oil equivalent and 1.2 billion barrels of recoverable confirmed oil. Uganda's estimated 93 billion cubic feet of gas likely will also not go unnoticed by future Chinese investment opportunities. While Uganda is very open to foreign aid and influence to capitalize on its resources, the Ugandan government passed the Petroleum (Exploration, Development and Production) Act of 2013. This act encourages its locals to invest in its large resources before foreign investors do so. However, CNOOC's involvement in Uganda has opened the doors for the Chinese government or other Chinese companies to further invest in Uganda's oil and natural gas reserves.

Discussion:
Uganda's oil and gas discovery in 2006 prompted China to increase its attention to Eastern Africa's natural resources. Uganda now has the fourth largest Sub-Saharan Africa's oil reserves, and intends to commercialize its oil by 2016, although estimates state 2018 is much more likely. CNOOC's win in the bid to develop Kingfisher Field in Lake Albert for USD 2 billion. The Lake Albert rift is estimated to hold 3.5 billion barrels of gas and 1.2 billion are confirmed barrels of recoverable oil and gas. The Albertine Graben is divided into 17 exploration areas, one of them being Kingfisher Field. An oil refinery is planned to begin construction soon to be completed at the same time the oil is commercialized, although no Chinese company is currently involved it opens up more opportunities for Chinese investment.

The amount of gas reserves is not currently decided, but the Nzizi, Ngiri, Kasamene, Kigogole, Ngege, Jobi-Rii, Ngassa, Nsoga and Jobi East fields all have shown estimates of 93 billion non-associated cubic feet of gas, where about 192 million standard cubic feet of associated gas is located in fields like Mputa, Waraga, Kingfisher and Nzizi. Uganda's oil is currently the main focus but its undeveloped natural gas reserves will not go unnoticed for the energy hungry Chinese investors.

There has been little criticism about the handling of the new discoveries, but organizations like the Human Rights Watch claims Uganda is risking falling victim to possible corruption when its natural resources do finally become commercialized. However, although Uganda is very open to foreign aid, it passed the Petroleum (Exploration, Development and Production Act in 2013 to help local businesses invest and exploit the natural resources as big foreign businesses do.