Six blocks in the Albertine Graben Region in western Uganda are being offered to oil companies in an open-bidding process writes BAZ WAISWA.
This lifts the moratorium on licensing of areas for petroleum rights in Uganda that has been in place since 2008.
“We have an estimated 6.5 billion barrels of in place petroleum resources from exploration work in less than 40% in the Albertine Graben. However, less than 10% of the Albertine Graben is currently licensed and the six blocks targeted for this maiden licensing round have good data coverage,” Eng. Irene Muloni, the energy minister said last week.
She said successful bidders will be announced by October 2015, but government participation will be mandatory.
This also marks the first competitive licensing round for petroleum exploration acreage in Uganda as provided for in the Petroleum Exploration, Development and Production Act, 2013 and the country’s National Oil and Gas Policy.
The six blocks are; Ngassa (410 Km2 ) in Hoima District, Taitai & Karuka (565 Km2 ) in Buliisa District, Ngaji (895 Km2 ), Rukungiri & Kanungu Districts, Mvule (344 Km2 ) in Moyo and Yumbe Districts together with Turaco (425 Km2 ) and Kanywantaba (344 Km2 ) in Ntoroko District.
Eng. Muloni said, “In line with the guiding principles of our National Oil and Gas Policy, we are committed to a transparent process developing Uganda’s oil and gas sector. That is why we have not licensed any new acreage for exploration since 2008. This was to enable us to put in place the required legal, regulatory and institutional framework to ensure an open, efficient and competitive licensing process.”
The government has undertaken resource and risk assessment of the areas proposed for licensing, developed a data room and is making available data packages to prospective investors in preparation for this licensing round.
Detailed information on the blocks was made available during the recent 7th East African Petroleum Conference and Exhibition in Kigali, early this month.
Currently, three international oil companies, Tullow Uganda Operations Pty Limited, Total E&P Uganda and China National Offshore Oil Corporation (CNOOC) Uganda Limited are licensed in Uganda’s Albertine Graben. Twenty one oil and gas discoveries have been made in Uganda to date, four of which were relinquished to government.
Appraisal of 17 of the 21 discoveries has been completed. One production license was issued over the Kingfisher field while discussions on applications for production licenses over 15 fields are in advanced stages. Twenty one discoveries have been completed.
One production license was issued over the Kingfisher field while discussions on applications for production licenses over 15 fields are in advanced stages.
