Uganda will issue production licences for six blocks to Tullow Oil and Total E&P Uganda before the end of this month, according to state minister for minerals (designate) Peter Lokeris
He added that licences for six blocks are up for grab for the two leading contenders.
“Everything is set. Before the end of the month, we shall issue licences for six blocks. At the moment, I cannot divulge more details but just know that Tullow Oil and Total E&P will be those we shall sign agreement with,” Lokeris stated.
The minister also revealed that a total of 120 exploration and appraisal wells have been drilled in the country. “Out of these, prospectors have encountered petroleum in 106 wells in the subsurface. This represents a drilling success rate of 88 per cent, which is the highest worldwide. It is estimated that the in-place volume of petroleum in the country to-date is more than 6.5bn barrels of oil equivalent. These resources, he said are sufficient to support commercial oil production in the country.
“It is important to note that the investment in seismic surveys, exploration and appraisal drilling increased from US$50mn in 2006, to US$3.2bn by the end of 2015, and is projected to go over US$3.4bn mark in 2016.”
According to data from the Ministry of Energy and Mineral Development, the next phase of exploration is expected to happen within the next four to five years and attracting additional investment of approximately US$20bn.