Business
Uganda targets another 8 billion barrels in oil-rich area
As the east African nation of Uganda inches closer to announcing new exploration and production licences that will pump fresh energy into its oil and gas sector, it estimates the amount of its undiscovered deposits at over 8 billion barrels.
According to a senior official at the Ministry of Energy and Mineral Development, this would increase the country’s volume of oil from 6.5 billion barrels to over 15 billion barrels. This would push Uganda’s discovery ratings above most oil producing countries. Currently, its recoverable volumes of 1.4 billion barrels place it just outside the top 10 African countries that have the biggest reserves.
Uganda plans to award new petroleum exploration, development and production licences before the end of this year.
“As we plan for the discovered resources, there is a lot of potential that still lies out there. Only some 10 percent of the Graben that has been licensed,” said Proscovia Nabbanja, acting principal geologist at the country’s Directorate of Petroleum.
The competitive licensing round was announced by the energy minister in February to cover 6 blocks, and exploration licences are expected to be issued before the end of this year, Nabbanja told a meeting organized by Global Rights Alert on gender dynamics in the extractive industries.
The ministry had said that it will announce qualified applicants on August 10, and 10 days later issue them proposal/bid documents and a model production sharing agreements.
The discoveries so far made are in less than 20 percent of the Graben, whose surface coverage is about 23,000 square kilometers (8,900 square miles), according to Fred Kabagambe-Kaliisa, the Energy Ministry Permanent Secretary.
“The Albertine Graben is Uganda’s most investigated, de-risked and prospective sedimentary basin. Therefore, the 6 blocks on offer present a great opportunity to discover additional resources that will enhance the sustainability of oil and gas production and commercialization,” said Kabagambe-Kaliisa.
The companies that expressed interest are from Nigeria, South Africa, the United Arab Emirates, Australia, and the United States.
Experts say the majority are small, with capability to explore wildcat wells. But the ministry says they are “the right blend” required for exploration, development and production of any additional oil and gas resources in the country.
