Global Processing

Italian Oil Company Will Invest $13 Billion in Ugandan Oil

January 25, 2010
Italian oil group ENI plans to invest 13 billion dollars to develop hydrocarbons in Uganda after acquiring rights from Canada''s Heritage group, according to the Associated Foreign Press. ENI plans to build a refinery and an electric power station, ENI chief Paolo Scaroni told La Repubblica. The Italian group will also rehabilitate a rail line between the Ugandan capital Kampala and the Kenyan port of Mombasa and build a new pipeline to Tanzania''s commercial capital Dar es Salaam, Scaroni said. The two sites in the Lake Albert basin are estimated to contain more than one billion barrels of oil. ENI and Heritage signed a contract in November under which ENI will acquire Heritage''s half ownership of the two sites for 1.35 billion dollars plus a possible additional 150 million dollars in cash or assets, depending on certain conditions. British firm Tullow Oil owns the other half.