REPUBLIC OF UGANDA
(MINISTRY OF ENERGY AND MINERAL DEVELOPMENT
Uganda Announces
irst Petroleum Exploration Licensing Round
2,938 Km’ of high potential acreage offered for licensing
KAMPALA, Uganda, 24” February 2015 - The Government of Uganda (GoU) has today
announced the country’s first open competitive licensing round for petroleum exploration. This
licensing round will cover six blocks in the Albertine Graben which is a proven prospective
sedimentary basin.
Eng. Irene Muloni, Minister of Energy and Mineral Development said, “We have an estimated
65 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.”
The six blocks are; Ngassa (410 Km?) in Hoima District, Taitai & Karuka (S65 Km") in Buliisa
District, Ngaji (895 Km’), Rukungiri & Kanungu Districts, Mvule (344 Km?) in Moyo and Yumbe
Districts together with Turaco (425 Km’) and Kanywantaba (344 Km?) in Ntoroko District. These
blocks have both seismic and well data which were acquired by oil companies previously
licensed in these areas. Stratigraphic Licensing will be applicable to some of these blocks.
The Government of Uganda 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.
Uganda’s first licensing round is guided by the National Oil and Gas Policy for Uganda (2008)
and the Petroleum (Exploration, Development and Production) Act 2013. The announcement
follows approval of Cabinet and submission of a report on the Licensing round to Parliament
Eng, Muloni added “In line with the g
ing 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 2007. 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.”
Uganda’s Ministry of Energy and Mineral Development will publish a Request for Qualification
(RFQ) for the First Licensing Round for Petroleum Exploration in Uganda.The qualified firms from this RFQ will be issued a detailed request for bids together with the
Modal Production Sharing Agreement (PSA) for the specific blocks. Companies submitting the
best evaluated bid for each of the blocks will proceed to negotiations with Government Prior to
signing production sharing agreements. The licensing round is ‘expected to conclude with the
award of licenses by the end of 2015.
‘The main objectives of implementing the licensing round are to offer exploration and
production investment opportunities in the country’s oil and gas sector, establish and increase
the country’s resource base, enhance sustainability of petroleum production and thus
contribute to the country’s economy through generating revenue to support other productive
sectors of the economy. The Ministry will make available more detailed information on the
blocks during the upcoming 7th East African Petroleum Conference and Exhibition which will be
held in Kigali, Rwanda from 4th to 6th March 2015.
Currently, three international oil companies, Tullow Uganda Operations Pty Limited, Total ERP
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.
‘The Government of Uganda and the companies currently licensed to undertake Petroleum
exploration, development and production in the country has entered into a Memorandum of
Understanding (MoU) for commercialization of the discovered resources. This MoU includes
development of a 60,000 barrels per day refinery, use of crude oil to generate electricity and
export of crude oil.
Uganda’s refinery project is being developed on a public private partnership basis. Following 2
competitive process, RT Global Resources led consortium from the Federation of Russia has
been selected as the preferred bidder to be lead investor for Uganda's Refinery Project and
acquisition of the required land for the development are in final stages. Plans to develop other
supportive infrastructure on a national and regional level are also underway. Commercial
production is expected to commence in 2018.
For more details on the Licensing Project and Uganda’s Oil and Gas Sector, visit
www.petroleum.£0.Ug
‘media Contac;
‘Commissioner, Petroleum Exploration and Production Department
llcensing@petrolgum.£0.