2. The recent announcement by Tullow Petroleum Company that it has discovered more than one billion barrels of petroleum resources under lake Albert in Uganda, one of the Republic of Ganda's major neighbors, may change forever the isolation that has characterized this small country since its independence from Britain in the 1960's. Exploration companies from many countries, including many national oil companies, have streamed into the country to acquire rights to explore for oil and gas because the Albertine Graben, which created the petroleum reservoirs in Uganda and, continues northward into Ganda. In response to this demand, the government of the Republic of Ganda announced last month that it will open a large acreage block near the Uganda border for petroleum and gas exploration.

Ganda is making a stable transition from the isolation dictatorship that governed its country since its independence from Britain in 1968 until its overthrow in a bloodless military coup two years ago. Within six months, the military receded from the political arena and allowed a United Nations team to facilitate the country's first-ever democratic election one year ago.

The victor in that election, Dr. S. K. Mara, a charismatic businessman and prominent critic of Ganda's previous government, moved quickly to open the country to oil and gas exploration.

i. Briefly recommend the key factors that should be considered by an international oil company before making an investment decision in the Republic of Ganda.

10 marks

ii. Advise the new Minister of Natural Recourses on oil and gas regulations that will assist in the management of oil and gas licensing activities in Ganda.