Uganda has extended an oil exploration licence to Nigeria’s Oranto Petroleum Ltd. by two years following the company’s request for compensation due to time lost during the COVID-19 pandemic.
Solomon Muyita, the Uganda Energy Ministry spokesman said the permit was intended for the exploration of the Ngassa Shallow and Deep areas in the western Hoima and Kikuube districts and was set to expire on December 29.
Extension of the permit is in line with the country’s drive to boost recoverable oil from current levels of 1.4 Bbbl, according to Leadership.
A production sharing agreement, royalties, cost of recovery, and profit sharing are part of the terms included in the extension, the ministry said.
French oil giant TotalEnergies SE is leading the development of Uganda’s oil fields, alongside China’s Cnooc Ltd. and Uganda National Oil Co.
The East African country is aiming to start production to start in 2025.