New Vision (Kampala)

Uganda: Rains Disrupt West Nile Oil

Kampala — OIL exploration in West Nile is likely to lag behind due to the current rains.

According to Neptune Petroleum Uganda, the incessant rains have halted the opening of access roads and frustrated plans to drill the first two test wells. The wells were to be constructed before the end of this year.

Appearing before the Arua district natural resources committee on Tuesday, Neptune's environment and community affairs manager, Rashid Mugabe, said the drilling has been rescheduled to early March.

"We have to be sure about the roads before we bring in the major equipment like rigs," Mugabe said.

He disclosed that they needed about 144 trucks to ferry equipment.

He said the narrow bridges at Odupi and Otumbari needed to be reinforced before the trucks could use them.

Mugabe noted that the border conflict between Madi-Okollo and Terego counties was also a threat to the exploration and appealed to the local authorities to work with the communities to end the dispute.

He assured the committee that they were conducting an environment impact assessment, to provide for environmental restoration.

Mugabe said Neptune was holding all land on a one-year lease, after which the owners will renegotiate prices depending on the land value in accordance with the test findings.

He said they would compensate farmers whose crops were destroyed during the survey.


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