Uganda tenders new blocks in 2nd licensing round

Artists conception of refinery planned by Uganda

The government of Uganda through the Ministry of Energy and Mineral Development Uganda plans tenders on new blocks in the country’s second licensing round, according to Petroleum Africa magazine.

The round includes five blocks in the Albertine Graben. These blocks are the Avivi, the Omuka, Kasuruban, Turaco, and Ngaji. The blocks cover 1026 sq km, 750 sq km, 1285 sq km, 635 sq km and 1,230 sq km respectively.

Roadshows presenting data on the blocks and terms of the licensing round are being held in London, Houston and Dubai on October 14, 17 and 22. Petroleum Africa featured an in depth report on what blocks Uganda is tendering. Click to read here on page 30-31 in the July/August issue.

The Ugandan Energy and Mineral Development Ministry plans to issue a request for qualification, inviting interested firms and/or consortia to submit applications within a period of six months.

“Upon evaluation of the applications, the successful firms/consortia will be issued with bidding documents comprising the model production sharing agreement and data sale regulations, among others,” Uganda’s Minister of Energy and Mineral Development, Eng. Irene Muloni, said in a statement on Thursday reported in various media.

Muloni further stated that the country expects new exploration companies to enter Uganda’s oil and gas space, as the price of crude oil is high and very attractive for investment.

The bidding process is expected to take five months, with the licensing round expected to be concluded by December 2020. This is Uganda’s first oil licensing round since 2015.

Uganda expects to start producing oil in the early 2020s and will open its own refinery within a year or so after production begins to flow, its oil minister has been quoted as saying.

France’s Total is an investor in Uganda’s oilfields, with China’s CNOOC and Britain’s Tullow Oil. Uganda’s crude oil has an API range of 170~ 330, with a low sulphur content. It is waxy with an average pour point of 400 C and hence solidifies at room temperature. Hence, it described as sweet and medium to heavy.

Source: Petroleum Africa and combined reports