She explained that while open competitive bidding is the preferred approach, it couldn't be applied earlier because the risk of exploration was high and attracting investors would be challenging.
About 400 companies have expressed interest in the unlicensed blocks in the oil rich Albertine graben, the energy and Mineral Developments Minister Irene Muloni has disclosed.
She disclosed this on Tuesday while announcing the very first round of competitive bidding for the remaining six blocks.
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The others areTaitai and Karuka block in Buliisa district, the Ngaji block in Rukungiri and Kanungu districts and the Mvule block in Moyo and Yumbe districts.
Muloni said the country had opted for open bid licensing because the global oil and gas industry gained confidence in Uganda\'s potential for future oil and gas production following the successful exploration activities.
She explained that while open competitive bidding is the preferred approach, it couldn\'t be applied earlier because the risk of exploration was high and attracting investors would be challenging.
Muloni disclosed that government has already undertaken resource and risk assessment of the areas that are up for licensing and is developing a data room through which data packages for the areas are being made available to prospective investors.
She said that the ministry will issue a request for Qualification inviting interested firms and/or consortia to submit statements of qualification with in a period of three months.
The qualified companies, Muloni explains, will then be issued a detailed request for bids which will be evaluated by government after which companies with the best bids will proceed to negotiations prior to signing production sharing agreements.
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The licensing round is expected to be concluded with the award of petroleum exploration licenses to successful firms by October 2015.
Oil and gas resources have been confirmed in 40% of the Albertine Graben and less than 10% is currently licensed.
Agather Atuhaire
Freelancer