October 11, 2024
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OIL & GAS

Uganda Explores New Regions for Oil as It Seeks to Boost Proven Reserves

The Republic of Uganda is investigating oil potential in two new regions, aiming to increase its proven reserves of 6.5 billion barrels, according to Dr. Ruth Ssentamu Nankabirwa, the Minister for Energy and Mineral Development.

Uganda first discovered commercial quantities of crude oil nearly two decades ago in the Albertine Graben basin, located in the west near the border with the Democratic Republic of Congo. However, production from this region is not expected to commence until next year.

Government geologists are now focusing on two new areas in the north and northeast of Uganda, as revealed by Minister Nankabirwa during a press conference in Kampala.

“The ministry is conducting preliminary petroleum exploration studies in the Moroto-Kadam Basin to assess its oil and gas potential. Similar surveys have begun in the Kyoga Basin,” she stated, adding that early results indicate the possibility of commercial oil and gas in the Moroto-Kadam Basin.

Uganda, according to Energy News Africa, has five basins with suspected hydrocarbon potential, but so far, only the Albertine Graben has been successfully explored.

The two main oil fields in this region—Tilenga and Kingfisher—are primarily owned by TotalEnergies, holding a 56.7% stake, while China’s CNOOC and Uganda’s national oil company, UNOC, own the remaining shares.

Commercial production has faced delays due to various challenges, including disagreements over field development, taxation issues, and the need for infrastructure and funding.

To date, only 72 of the planned 457 wells in the Tilenga and Kingfisher fields have been drilled. Meanwhile, oil companies have submitted plans for a liquefied petroleum gas (LPG) facility, for which the government plans to issue a license soon.

Additionally, Minister Nankabirwa mentioned that the government expects a decision next month from Chinese funders, including EXIM Bank and SINOSURE, regarding credit for the proposed East African Crude Oil Pipeline (EACOP). The 1,445-kilometer (895-mile) pipeline will enable Uganda to export its crude oil through a port on Tanzania’s Indian Ocean coast.

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