The then Energy Minister, Engineer Irene Muloni announced the second licensing round in May 2019 hoping that process would be completed in September the same year.
Energy Permanent Secretary , Robert Kasande (L) , an officer from Oranto and fomer Energy Miniister , Irene Muloni
The Energy Ministry is expected to conclude
negotiations with oil companies qualified to operate new blocks in the
The meeting at Serena Hotel Kigo is an important development
towards the conclusion of the long-awaited second round licensing of oil blocks. Energy
and Mineral Development Ministry Permanent Secretary, Robert Kasande is expected
to steer the process on the government side.
The then Energy Minister, Engineer Irene
Muloni announced the second licensing round in May 2019 hoping that process
would be completed in September of the same year. The blocks on offer included Avivi in Arua, Omuka in
Nebbi, Kasuruban located between Buliisa and Packwach) Turaco in Ntoroko
District and Ngaji stretching along the borders of Bushenyi, Rubirizi and
The entire process should have been completed by the end
December with the award of exploration licenses to the successful bidders but
almost went on halt as the COVID-19 pandemic struck.
Four out of the six companies that submitted bids were
successful having met the requirements in the Request for Qualification (RFQ).
The successful bidders include Total E & P Activities Petrolieres, France. DGR
Global Limited, Australia, Uganda National Oil Company Limited (UNOC), Joint
Venture of PetroAfrik Energy Resources East Africa Ltd, Uganda and Niger Delta
Petroleum Resources Ltd, Nigeria.
The meeting at the shores of Lake
Victoria is expected to discuss the Request for Proposal (RFP) and the Modal
Production Sharing Agreement (MPSA) documents.
The last licencing round in 2015,
since the new petroleum regulatory regime came into force in 2013, attracted
about 17 prospective oil companies and was concluded in 2016 with only
Australia’s Armour Energy Limited and Nigeria’s Oranto.
petroleum discoveries in the Albertine Graben are estimated to contain 6.5 billion barrels
of oil, of which 1.4 billion are considered recoverable – foreign investments
into the country are expected to reach nearly $20 billion.
The acreages on offer have
become more attractive since Tullow Oil announced the sale of its entire stake
in the Lake Albert Development Project to Total.