KAMPALA, March 13 - Uganda's environmental authority has approved an early production scheme by Tullow Oil removing a legal hurdle for development of crude in the Albertine basin, the body said on Friday.
The UK-based explorer said on Wednesday hydrocarbon finds in the east African nation were large enough to justify export-led development, with resources of some 600 million barrels.
Uganda's state energy minister told Reuters in an interview last month that the land-locked nation wanted to scrap the idea of a mini-refinery in favour of a larger one due to the size of the reserves.
"We approved the environmental aspects of early production," said Naomi Karekaho, spokeswoman for the National Environment Management Authority.
The semi-autonomous body said Tullow had to move the proposed site 2 km (1.2 miles) from the Kabwoya Wildlife Reserve and Hwoha River to a community wildlife area. The reserve is home to some endangered species, she said.
NEMA said Tullow must also get permits from the Uganda Wildlife Authority and the Petroleum Exploration and Production Department.
President Yoweri Museveni's government expects to start pumping some oil in 2010 or 2011 -- near the time of elections when the ex-guerrilla leader is expected to stand for a fourth term -- but production was initially expected earlier.
Oil prices have plummeted since last year from a high of some $147 per barrel.
"The delays are based both on the commercial viability and the political assessment," said analyst Angelo Izama. "(Early production) might signal more of a political success for Museveni in the lead up to elections."
Kampala says it expects in excess of 1 billion barrels in the Lake Albert basin, which borders the Democratic Republic of Congo.
Tullow Oil and Heritage Oil hold 50 percent equity each in Bloc 1 and 3A while Tullow owns Bloc 2 outright. Tullow says it plans to sell a stake in its holdings in Uganda at some point but adds no talks are ongoing.
Dominion Uganda Ltd, a subsidiary of Dominion Petroleum Ltd has Bloc 4B in the south-west. Tower Resources which took over Neptune Petroleum Limited in 2006, has Bloc 5 -- located in the north of the Albertine Graben.
Blocs 3B, 3C, 3D and 4A are open.
The UK-based explorer said on Wednesday hydrocarbon finds in the east African nation were large enough to justify export-led development, with resources of some 600 million barrels.
Uganda's state energy minister told Reuters in an interview last month that the land-locked nation wanted to scrap the idea of a mini-refinery in favour of a larger one due to the size of the reserves.
"We approved the environmental aspects of early production," said Naomi Karekaho, spokeswoman for the National Environment Management Authority.
The semi-autonomous body said Tullow had to move the proposed site 2 km (1.2 miles) from the Kabwoya Wildlife Reserve and Hwoha River to a community wildlife area. The reserve is home to some endangered species, she said.
NEMA said Tullow must also get permits from the Uganda Wildlife Authority and the Petroleum Exploration and Production Department.
President Yoweri Museveni's government expects to start pumping some oil in 2010 or 2011 -- near the time of elections when the ex-guerrilla leader is expected to stand for a fourth term -- but production was initially expected earlier.
Oil prices have plummeted since last year from a high of some $147 per barrel.
"The delays are based both on the commercial viability and the political assessment," said analyst Angelo Izama. "(Early production) might signal more of a political success for Museveni in the lead up to elections."
Kampala says it expects in excess of 1 billion barrels in the Lake Albert basin, which borders the Democratic Republic of Congo.
Tullow Oil and Heritage Oil hold 50 percent equity each in Bloc 1 and 3A while Tullow owns Bloc 2 outright. Tullow says it plans to sell a stake in its holdings in Uganda at some point but adds no talks are ongoing.
Dominion Uganda Ltd, a subsidiary of Dominion Petroleum Ltd has Bloc 4B in the south-west. Tower Resources which took over Neptune Petroleum Limited in 2006, has Bloc 5 -- located in the north of the Albertine Graben.
Blocs 3B, 3C, 3D and 4A are open.
