TZ, Uganda in joint oil exploration task

TAFT, CA - JULY 21: An oil rig south of town extracts crude on July 21, 2008 in Taft, California. Hemmed in by the richest oil fields in California, the oil town of 6,700 with a stagnated economy and little room to expand has hatched an ambitious plan to annex vast expanses of land reaching eastward to Interstate 5, 18 miles away, and take over various poor unincorporated communities to triple its population to around 20,000. With the price as light sweet crude at record high prices, Chevron and other companies are scrambling to drill new wells and reopen old wells once considered unprofitable. The renewed profits for oil men of Kern County, where more than 75 percent of all the oil produced in California flows, do not directly translate increased revenue for Taft. The Taft town council wants to cash in on the new oil boom with increased tax revenues from a NASCAR track and future developments near the freeway. In an earlier oil boom era, Taft was the site of the 1910 Lakeside Gusher, the biggest oil gusher ever seen in the US, which destroyed the derrick and sent 100,000 barrels a day into a lake of crude. (Photo by David McNew/Getty Images)

TANZANIAN experts have teamed up with their Ugandan counterparts to conduct oil exploration in the areas likely to have natural resources in the country.

Energy Minister, Dr Medard Kalemani made the revelation here at a recent workshop for parliamentary committee on energy and minerals members, noting that the ministry had formed a joint team to carry out oil exploration activities.

“We have started to cooperate with Uganda in the oil sector; the government has formed a joint team with Uganda to conduct oil exploration,” said the minister while briefing the workshop on the progress of oil exploration.

Dr Kalemani said the joint team provides the Tanzanian experts with an opportunity to borrow a leaf of experience from their Ugandan experts, saying so far, Tanzania has not yet discovered oil.

“So far, Tanzania has discovered gas in the southern parts of the country. The oil exploration is in progress in various parts of the country,” said the minister.

Dr Kalemani observed that the government came up with the idea of cooperating with Uganda on oil exploration after the country had discovered oil in Lake Albert.

As for the construction of the Hoima-Tanga crude oil pipeline, Dr Kalemani, said talks were ongoing between Tanzania and Uganda on oil transportation.

“We expected the joint meeting to end this month. But, we have extended the meeting to June. We have learnt that Uganda has completed talks with an investor who will conduct oil drilling,” said the minister.

Dr Kalemani pointed out that the talks between Tanzania and Uganda on construction of the Hoima-Tanga oil pipeline would resume next month and stretch to June.

As for a Liquefied Natural Gas (LNG) processing plant, Dr Kalemani, said the project worth 3.5bn/- would be carried out as planned, saying the government was currently in talks with possible investors in the mega project.

“We have agreed to conduct discussions with one prospective investor at a time instead of assembling all of them in one meeting,” he said.

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