Government of Uganda has issued eight oil production licenses to oil firms Total E&P and Tullow Oil Company.
Five of the licenses were granted to Britain’s Tullow Oil while France’s Total was given three, after years of regulatory delays and tax disputes moving the country closer to production of crude oil.
Representatives of the oil companies and Uganda’s government signed the agreements in the capital, Kampala, on Tuesday.
Each license is good for 25 years and can be renewed upon expiry for an additional five years.
The China National Offshore Oil Corporation, or CNOOC, which had previously been granted a license to operate in Uganda, when in 2006 it discovered commercially viable deposits of crude in the Albertine region bordering Congo pulled out recently under unclear circumstances.
Uganda hopes to become a crude producer by 2020.