PRODUCTION DELAY
Infrastructure holding back Uganda’s crude exports
Nairobi /Kampala — Output from Ugandan crude deposits being developed by companies including Tullow Oil and Total is unlikely to be exported as soon as the nation expects because of the scale of the infrastructure projects required to transport the fuel out of the country. The government of Uganda, where oil was discovered in 2006, has said it expects to begin shipping crude within five years. To do that, it must overcome challenges facing other countries in the region like Mozambique and Tanzania, where a lack of finance and technical capacity to build multiple, capital-intensive infrastructure projects is delaying the start of natural-gas production. "Everything being done in Uganda is for the first time ever, everything can be a risk," said Will Hares, an analyst at Bloomberg Intelligence in London. "Timetables are prone to slipping, especially in frontier regions. All stakeholders would suffer from project delays." Landlocked Uganda has an estimated 1.7-billion barrels of recove...
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