Uganda's oil discoveries in three blocks are expected to generate 100,000 barrels of oil per day for the next 25 years, the country's Energy Ministry said.
The Energy Ministry's principal geophysicist Robert Tugume told Bloomberg that Uganda has found deposits containing nearly 2 billion barrels of crude, out of which 600 million barrels can be salvaged.
"The finds in two of the three blocks are jointly owned by Tullow Oil, the UK explorer with the most licenses in Africa, and Heritage Oil Plc, and the third block is also owned by Tullow," Tugume said.
Uganda issued oil concessions to five British companies and the remaining five blocks will be explored after the enactment of a new oil and gas policy by mid-year, according to Tugume.
In 2011, Tullow will commence production and for 2012 it has set a production target of 5,000 to 10,000 barrels per day, which will increase to 150,000 barrels per day in five years' time.
Dominion Petroleum and Tower Resources unit Neptune Petroleum Uganda are both carrying out oil exploration in Uganda.