The discovery of commercial hydrocarbons in Lake Albert and its shores has led to border disputes between Uganda and DRC.
There are fears that tension may increase once Uganda begins the extraction given that the boundary between the two countries in the lake cannot be easily identified.
The signing of the Production Sharing Agreement and grant of Petroleum Exploration License will have Armour Energy Limited as a newcomer in Ugandas oils oil and gas sector. It is one of the three companies that made it to the last round of the first competitive licensing process which opened in February 2015.
Managing public expectations remains a challenge for the government of Uganda as the country edges ever closer to producing her first crude oil. Dr. Earnest Rubondo, the Petroleum Authority Executive Director, is however excited that Uganda has smoothly navigated through the anxiety and expectations than previously thought.
The Petroleum Directorate says it is undertaking fresh due diligence on Oranto Petroleum Limited before the Nigerian oil company can be granted an exploration license. Robert Kasande, from the the Directorate Of Petroleum, says the government decided to do more due diligence on Oranto Petroleum Limited before it can be granted exploration licenses and production sharing agreements.
The companies include Waltersmith Petroman Oil Limited, Oranto Petroleum, Niger Delta and Armour, three of which are based in Nigeria. He said the negotiations are nearing conclusion with the possibility of having them signed before the end of this year but most likely in early 2017.