Sudan Government:Ready To Cooperate With Uganda Over Oil Production

KAMPALA, Uganda (Dow Jones)—-The Sudanese government is ready to offer maximum cooperation to Uganda as the latter moves closer to start oil production in the Albertine rift, a diplomatic official said late Wednesday.

Ali Hussein Award, Sudan's ambassador to Uganda, said in remarks broadcasted live on the national television that Sudan was ready to share its expertise in oil production with Uganda, which has discovered huge oil reserves in the Albertine rift.

"The Sudanese government is ready to cooperate with Uganda in developing its oil sector, including establishing a refinery," he said.

Hussein said Sudan is also ready to resolve outstanding border disputes with Uganda along the common border to ensure peace and stability.

The Albertine rift stretches from southern Sudan through the lake Albert valley to southwest Uganda.

The northern part of Albertine rift has been unstable for many years due to the rebel insurgency of Lord's Resistance Army. The Sudanese government has also denied reports that Joseph Kony, the LRA's leader, had sought refugee in Darfur, seeking protection from the Sudanese army.

France-based Total SA (TOT), which operates in Sudan, has expressed interest in investing in Uganda's downstream oil sector, according to sources.

Total's potential production in southern Sudan could be tied to the Ugandan oil pipeline project, which is expected to connect the Albertine rift to the Kenyan port of Mombasa about 1,300 kilometers away.

Total officials declined to confirm the company’s interest in Ugandan

Oil exploration companies already operating in Uganda include U.K.-based Tullow Oil PLC (TLW.LN), Heritage Oil PLC (HOIL.LN), Tower Resources PLC (TRP.LN) and Dominium Ltd.

-By Nicholas Bariyo, contributing to Dow Jones Newswires ; [phone]; [e-mail]