Uganda Invites Middle East Resources To Bid For Oil Investment

13th Jun 2010 13:46

KAMPALA Uganda (Dow Jones)--The Ugandan president has asked Dubai-based Africa Middle East Resources to submit a bid and compete for investment opportunities in the country's upcoming oil sector, the presidency said Sunday. In a statement, a spokeswoman said President Yoweri Museveni extended the invitation during talks with Mohammed Alabbar, chief executive of Africa Middle East Resources, in the Ugandan capital Kampala. "Uganda has one of the most favorable investment environments with access to tax and quota free markets in the U.S., the European Union, India and China," President Museveni was quoted as saying. Alabbar, a prominent Asian businessman and a senior aide to Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum, is in Uganda to explore investment opportunities. Africa Middle East Resources is a new company formed by Alabbar to seek investments in Africa. A number of international oil companies have already expressed interest in investing in Uganda's oil sector following the discovery of commercial oil reserves along the country's western border. The companies include China's Cnooc Ltd. (CEO), France-based Total SA (TOT) and Italy-based Eni Spa (E). Total and Cnooc have expressed interest in forming a partnership with U.K.-based Tullow Oil PLC (TLW.LN) to develop the fields in three oil blocks. Tullow Oil is the sole owner of one of the blocks and co-owns the other two with Heritage Oil PLC (HOIL.LN). Heritage is currently in the process of selling its Ugandan stake to Tullow for $1.5 billion, but the deal is awaiting government approval. According to Uganda's Ministry of Energy and Minerals Development, at least $10 billion is required to develop the country's oil industry in the next ten years. -By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 [email protected] (END) Dow Jones Newswires June 13, 2010 08:46 ET (12:46 GMT)