Uganda has granted eight production licenses to France’s Total and UK-listed explorer Tullow Oil.
Three of the licenses were issued to Total while five went to Tullow. This clears a major hurdle as the east African country seeks to move faster toward commencing production.
Commercial crude reserves were discovered in the east African country a decade ago but production has been repeatedly delayed amid wrangling over taxation and field development strategy.
The licenses cover exploration Area one, operated by Total and Exploration Area Two which is operated by Tullow. The offer of licenses ends a period of protracted negotiations between the firms and the government.
The licenses are valid for 25 years and can be renewed for an additional five years.