Uganda Prime Minister assures investors of government support

Wednesday July 6, 2011

The Uganda government is committed to enacting policies that will attract investments into the country, the Prime Minister Amama Mbabazi has reaffirmed.

Mbabazi was receiving officials from the China National Offshore Oil Corporation (CNOOC), who paid a courtesy call on him on Monday. He said the oil sector would boost development programmes in the country.

Mbabazi said the country was building local capacity, with bilateral assistance, to handle her nascent oil industry.

The 10-man delegation was led by the Chinese ambassador to Uganda, Sun Heping.

Mbabazi revealed that the Chinese investment in the country’s oil sector was a result of President Yoweri Museveni’s invitation to the Chinese President, Hu Jintao.

Early this year, the company signed a deal with the London-based Tullow Oil to buy a one-third stake in Uganda’s oil development project for about $1.5b, allowing them to explore for oil in Blocks 1, 2 and 3A in the Albertine Graben.

While briefing the Prime Minister on the company’s plans, the CNOOC president, Li Fanrong, described the project as one of the largest onshore oil and gas developments in Africa in recent years.

He said it would make Uganda one of the major oil producing countries in the world.

The firm plans to fly in Chinese experts and specialised equipment to build local capacity.

The New Vision Newspaper