East African Business Week

KAMPALA, UGANDA - The discovery of more oil reserves last month in the Albertine Graben is pushing Uganda's discovery ratings above most oil producing countries.
Last month Uganda discovered commercially viable reserves at Gunya in the Albertine Graben.
This is the latest discovery done by Tullow Oil, the exploration company as the third biggest East African Economy continues to punch the ground for more oil deposits.
With already confirmed reserves of 2.5 billion barrels of oil encountered in 51 out of the 55 wells drilled, the developments have put Uganda's discovery rate at 92.3%.
Uganda's oil discoveries have now overtaken most oil producing countries like Denmark, Gabon, Equatorial Guinea, Trinidad and Tobago following continuous discoveries. Saudi Arabia is the biggest oil producer in the world with reserves worth 262.7 billion barrels followed by Canada with 178.9 billion barrels.
Explaining developments in the oil sector last week, Uganda's Commissioner Petroleum Exploration and Production Department (PEDP), Mr Ernest Rubondo, emphasised that  the Albertine Graben is richer in oil deposits than gas.    
Rubondo emphasised the need for national participation in the oil sector saying Ugandans should stand a change to benefit by taking up jobs and bidding for other businesses.
"The oil industry is growing and changing. It is important for Uganda to participate in the process other than be given to foreigners," Rubondo said.
It is not clear what volumes will come out of the latest Gunya discovery well. "Gunya was drilled, they found oil, but they are yet to test and find out how much and how long it will produce," says Mr Honey Malinga, the PEPD Assistant Commissioner.
"There are other surveys to be done in order to confirm the actual volumes."
In 2006, commercially-viable quantities of oil were found in the Albertine Graben in western Uganda.
The Albertine Graben, the northern portion of the Albertine Rift, stretches from the border of Uganda, Sudan and the Democratic Republic of Congo (DRC) in the north to Lake Edward on the Uganda-DRC border in the south-a distance of over 500 kilometers and an area of about 23,000 square kilometers. The Ugandan government established nine oil prospecting blocks in the Albertine Graben, of which five blocks were allocated to oil companies for prospecting purposes.
By mid-2009, over $700 million had been spent on oil exploration in the region.
Oil companies have drilled in only a few exploration blocks, but have already found more than 2.5 billion barrels of oil.
Some analysts estimate that Uganda's Albertine Graben may hold more than 6b barrels of oil. Projected production of 100,000 to 150,000 barrels per day would significantly increase revenues for the government and, if well managed and invested, could improve economic growth, reduce poverty and promote development in Uganda
Uganda's National Oil and Gas Policy, approved by Cabinet in February 2008, recognises that "Openness and access to information are fundamental rights in activities that may positively or negatively impact individuals, communities and state.
Rubondo, however, clarified on allegations that Uganda has no petroleum law.
"There are some firms that are organised to disseminate wrong info" he said. The Commissioner further says all the land licensed to oil exploration companies will revert to Government after the expiry of the license period.
"If the government allows you to explore for eight years, you can't explore again. So that area you were licensed to reverts to government automatically," he said.
The policy promotes high standards of transparency and accountability in licensing, procurement, exploration, development and production operations as well as management of revenues from oil and gas.
It will also support disclosure of payments and revenues from oil and gas using simple and easily understood principles in line with accepted national and international financial reporting standards.
 The Policy is consistent with the internationally-recognised Extractive Industry Transparency Initiative (EITI) disclosure standards.
EITI, launched by the United Kingdom in 2002, is a voluntary approach to transparency.
While it is said to have achieved some success in a few countries, its overall record is inconsistent.