Energy ministry announces five new blocks for Uganda’s second oil and gas licensing round

ug pressrelease rig lakealbert 713x476In the presence of Yoweri Kaguta Museveni, the president of Uganda, the country’s Ministry of Energy and Mineral Development announced the second oil and gas licensing round at the Uganda International Oil & Gas Summit (UIOGS)

Originally planned to be a seven-block round, the revised plan is for five blocks in the Albertine Graben area to be opened for bids from IOCs and local companies willing to form joint ventures with IOCs. Forty per cent of the area has been explored with a 90 per cent success rate. The timeline for the licensing round is: applications to be submitted by 22 November 2019, evaluation of applications between 25 November and 19 December 2019, bidding to take place between 6-10 January 2020 and licenses to be issued by the end of 2020.

At UIOGS, Frank Mugisha, representing the ministry gave delegates and the president an outline of the prospects for each block.

The northernmost block, Aviv, which is Block 1, is 1,026km2 and has 488km of 2D seismic data. Six years ago, three dry wells were drilled but according to the seismic data, there is a working petroleum system.

Omuka (Block 2) in the Buliisa area has 2D seismic data, as well as ground gravity and magnetic data. It is 750km2 in size. Like Aviv, three dry wells have been drilled in this block.

Kasurubani (Block 3), also in the Buliisa area, was drilled by Tullow and oil was found, but the company relinquished the block to the government. The biggest of the blocks at 1,285km2, also has 2D seismic, ground gravity and magnetic data.

Turaro (Block 4), the smallest of the blocks at 635km2, has 2D and 3D seismic data as well as ground gravity and magnetic data. Three exploration wells have found oil and gas but the gas contained carbon dioxide.

Ngaji (Block 5) has 480km of 2D seismic data from a 1,230km2 block. One well has been drilled but it was dry. Mr Mugisha described this block as “a bit controversial” as it lies in a heavily protected conservation area near the Democratic Republic of Congo. He added that it would be important for the successful bidder to “work closely with stakeholders” to ensure the environment is protected.

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