Kisumu, 20/09/07
 
UGANDA AND DR CONGO TO ENTER COOPERATION AGREEMENT ON OIL PRODUCTION AT LAKE ALBERT

By Leo Odera Omolo

The Democratic Republic of Congo (DRC) and Uganda are to review the 1990 treaty for oil exploration along their common border in the Lake Albert Valley.

Uganda Ministry of Energy and Minerals has disclosed .The statement signed by the Minister Mr Daudi Migereko said he would soon meet his DRC counter part in early October to finalize talks in order review the 1990 treaty.

In 1990 Uganda and DRC signed a cooperation agreement that sets out the distribution of minerals that lie across the two Countries border

The two countries were carrying out joint feasibility studies until the 1990s when Ugandan forces suddenly invaded eastern part of DRC territory.

The agreement needs to be upgraded to international standards, Magereko said following the confirmation of the existence of commercial oil deposits in the regions and to faster economic cooperation

The two countries, according to the Uganda Minister will also sign an economic and technical cooperation agreement.

Uganda troops and the DRC forces have recently clashed over a disputed Island, which is located on the Uganda side of the Lake Albert. A lot of oils deposits are located underneath of the Island.

Meanwhile it was reported in Kampala that South African multinational companies are planning to extend their operations to the Oil rich Lake Albert shores following the recent discovery of oil deposits in the area.

"My country companies are targeting this area where they intend to establish sizeable investments. However we are working towards forging a partnership with local firms in Uganda, the South African High Commissioner to Uganda" Henry Thandaujise Chiliza was quoted as having told a meeting of Horma district leaders at the weekend in Western Uganda.

Chiliza according to reports made these remarks while concluding an extensive tour of oil sites and the surrounding areas aimed at assessing the areas potential for business.

The South African envoy was the first foreign diplomat to visit the oil region on the shores of lake Albert.The lake is located in a valley of border separately DRC and Uganda.It is shored in part by the two countries. Heritage and Tullow oil companies have discovered huge oil deposits at Kingfisher oil well and Vaiso Tonya region following a string of exploration successes.

The government has embarked on an early oil production scheme scheduled to kick off in 2009. A mini refining plant to make diesel, Kerosine, heavy fuels and aviation oil will also be constructed in the area.

The developments have generated a lot of excitement in and outside the Country especially among the business community. Sources in Kampala says South African based Telecommunications and Tourism Companies had already conducted a survey in the are to asses the business potential.

"We (South Africans) are not part of the donor group .Our policy is that when we are investing in a Country we are contributing to development. This investment drive should be understood as one way of developing a country" Ambassador Chiliza was quoted as saying.

He said, " Some people that aid is the best way to develop but investment is an asset for any country".

The envoy said South Africa government was going to construct a modern administration block and a clinic at Kaweweta Army Barracks in Luwero in Central Uganda.

Ends

Leooderaomolo@yahoo.com