OAO Lukoil Holdings (LKOH.RS), Russia's biggest independent oil producer, said Monday it is in preliminary talks with Uganda to develop hydrocarbons in the African nation, confirming a media report from last week.
Lukoil, 20%-owned by U.S. oil major ConocoPhillips (COP), presented an investment proposal to Ugandan President Yoweri Museveni during a visit by the company's vice-president in charge of business development, Andrei Sapozhnikov, last week.
Uganda has five unlicensed oil blocks in the Lake Albert basin that are set to be licensed later this year. Lukoil said it would be interested in that basin, but hasn't made a final decision to participate in the upcoming tender.
The company declined to provide further details.
According to a statement from Uganda's state house last week, Lukoil expressed interest in oil exploration, refinery and the training of local manpower to facilitate the development of the sector.
Interest in the country's oil sector continues to grow following the discovery of around a billion barrels of oil in three exploration blocks.
Companies already operating in the sector include U.K.-based Tullow Oil PLC (TLW.LN)--which is in the process of taking over the stakes of Heritage Oil PLC (HOIL.LN) in the country--Tower Resources PLC (TRP.LN) and Dominion Ltd.
Other companies that have expressed interest in the country's oil sector include U.S.-based Exxon Mobil Corp. and France-based Total SA (TOT), among others.