Oil and Gas Blocks for Exploitation in Uganda East Africa; Conducive investment climate, minimal geological and commercial risks. Most areas of the Albertine Graben have been greatly derisked in terms of geological, market, transportation and infrastructure.
Hon Eng Irene Muloni, Minister of Energy and Mineral Development, officially announced the second licensing round in ‘respect of petroleum exploration, development and production in Uganda’ with five new blocks available in the Albertine Graben. The five blocks are; Avivi with an area coverage of 1026km2, Omuka (750km2) ), Kasuruban (1285km2), Turaco (637km2) and Ngaji (1230km2 ).
The ministry highlighted a number of factors driving the launch of the second licensing round, including;
Establishment of additional petroleum resources and reserves to the current confirmed six bn barrels of oil out of which about 1.4 bn barrels are recoverable; and 500bn cubic feet of non-associated gas. The additional resources are to ensure sustainability of oil production and economic viability of the Refinery and the East African Crude Export Pipeline.
To take advantage of the current high crude oil price. To date, the price of crude oil at the world market is above USD 60 and is progressively rising. Typically, licensing of acreage during this environment would attract a large spectrum of oil companies including moderate to big ones and subsequent achievement of competitive work programs and fiscal terms.
Considerable interest in investing in the country’s oil and gas sector. Numerous investors have expressed interest in investing in the sector and it is important that Uganda considers them.
Conducive investment climate, minimal geological and commercial risks. Most areas of the Albertine Graben have been greatly de-risked in terms of geological, market, transportation and infrastructure.
Existence of comprehensive and robust legal, regulatory and institutional frameworks which guarantee certainty to investors.
Promotion of National Content. The exploration licensing is envisaged to create several opportunities including national participation through service provision and employment.
The experience gained from conducting the first Licensing Round and the existence of the state-of-the-art data room which are pivotal for a successful licensing round.
The bidding process will take five months and result in the negotiations and signing of production sharing agreements between Government and the successful bidders. The licensing round is expected to be concluded with the award of Petroleum Exploration Licenses to successful firms by December 2020. Read the full official announcement https://uiogs.com/strategic-conference?dm_i=1BAS,6A2N4,O3FIFH,OS28X,1
Leading the development of Uganda’s oil and gas space, and hosted by the Hon. Eng. Minister Irene Muloni, under the auspices of the Ministry of Energy and Mineral Development; the 5th Uganda International Oil & Gas Summit will return to the Kampala Serena 25-26 September 2019, welcoming over 400 attendees from across 125 national and international companies participating.
With a program agenda led by the Ministry, across two days, speakers and delegates will have the opportunity to participate within prearranged VIP meeting schedules, networking functions and the full program of business, technical and special focus sessions, providing critical insights into the region’s oil and gas sector. Specific focus will be placed on the government’s goals and objectives over the near-medium term, the role of technology in the sector, local content, finance and collaborations, talent development and the future of the sector click here to learn more and download the draft agenda