Oil exploration is a long process

Uganda’s Minister of Energy and Mineral Development, Eng. Irene Muloni has launched second open competitive licensing round in respect to Petroleum exploration, development and production in Uganda.

At the launch that took place in Mombasa, Kenya yesterday during The 9th East African Petroleum Conference and Exhibition 2019, Muloni disclosed that the licensing round covers five (5) Exploration Blocks in the Albertine Graben, which is the most prospective area of exploration, development, and production in Uganda. The Blocks are:-LR2_2019_Block01 (Avivi), area coverage of 1026km2; LR2_2019_Block02 (Omuka), area coverage of 750km2; LR2_2019_Block03 (Kasuruban), area coverage of 1285km2; LR2_2019_Block04 (Turaco), area coverage of 637km2; and LR2_2019_Block05 (Ngaji), area coverage of 1230km2.

The Minister hailed President Yoweri Kaguta Museveni for his visionary leadership and strong guidance he has given to the sector since 10th February 1986. She also commended the EAC Partner States for the support they have provided in facilitating the development of the oil and gas sector in Uganda and the region at large.

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The licensing round was driven by a number of factors including, among others, the establishment of additional resources and reserves to the current confirmed 6 billion barrels of oil out of which about 1.4 billion barrels are recoverable, and 500 billion cubic feet of non-associated gas; and existence of comprehensive and robust legal, regulatory and institutional frameworks which guarantee certainty to investors. The second launch follows the first licensing round through competitive bidding undertaken in 2017.

Uganda made its first commercial oil discovery in 2006. To date, over 121 wells have been drilled with a success rate of over 88 per cent. Preparations are under way to commence production following the issuance of production licenses to Total E&P Uganda B.V, Tullow Uganda Operations Pty Ltd, and CNOOC Uganda Ltd. The commercialization of the oil in Uganda will involve export of part of crude oil by the East Africa Crude Oil Pipeline through Tanga Port in Tanzania.

The 9th East African Petroleum Conference and Exhibition 2019 is being attended by Ministers in charge of the sectors in the Partner States; Honorable Members of East African Legislative Assembly; Honorable Members of National Parliaments; Members of the Diplomatic Corps, Development Partners and investors; Petroleum Sector Business Community; and Members of the EAC Regional Petroleum Conference and Exhibition Steering Committee.