The Ministry of Energy and Mineral Development has licensed CNOOC a Chinese company.
The Company will now start field studies of Oil production at Kingfisher oil well.
“Government had put a condition on the license in February 2012, which would only be lifted after the oil companies submit an acceptable field development plan and petroleum reservoir report,” said Peter Lokeris, the State Minister for Minerals while issuing the license.
According to the minister CNOOC Uganda submitted the requirements in 2012, which were reviewed and accepted by government leading to the issuance of the new license last week.
Lokeris says Kingfisher oil field located in Buliisa district, has an average of 635 million barrels of which 196 million barrels are recoverable.
He added that the field will be developed to produce between 30,000 to 40,000 barrels per day.
CNOOC got shares in Uganda’s oil after a farm down in February 2012 by Tullow.
Tullow sold some of its assets to CNOOC and Total making the three companies joint partners with equal rights to undertake exploration, development and production in the Albertine Graben.