Uganda announces tender for Albertine Graben acreage

Feb. 26, 2015
The virtually untouched Albertine Graben of Uganda may contain more than 6.5 billion bbl of oil resources according Ugandan officials.

The virtually untouched Albertine Graben of Uganda may contain more than 6.5 billion bbl of oil resources according Ugandan officials.

Announced Feb. 24, 2015, the Ugandan government will offer its first competitive licensing round for six blocks including:

• Ngassa in the Hoima district.

• Taiti and Karuka in the Buliisa district.

• Ngaji in the Rukungiri and Kanungu districts.

• Mvule in the Moyo and Yumbe districts.

• Turaco and Kanywantaba in the Ntoroko district.

In all, the licensing round puts 2,938 sq km up for grabs. According to government officials, the aforementioned resources estimate is sourced from exploration work in less than 40% of the Albartine Graben. Less than 10% of the region is licensed. The Albertine Graben is proven prospective sedimentary basin (OGJ Online, Jun. 17, 2002).

This first licensing round is guided by the Uganda’s National Oil and Gas Policy of 2008 and the Petroleum Act of 2013.

To date, 21 discoveries have been made in the country, four of which were relinquished to government. One production license, Kingfisher field, has been granted while applications are under review for 15 additional fields.

Uganda recently announced a 60,000 b/d refining project. The proposed refinery is planned for the Lake Albert region of Buseruka Subcounty in Uganda’s Hoima District, and will be developed in two 30,000-b/d phases and include on-site crude oil and product storage, as well as a 205-km product pipeline to a distribution terminal near Kampala (OGJ Online, Feb. 17, 2015).

The licensing round is expected to conclude with the award of licenses by the end of 2015. Tullow Uganda Operations Pty. Ltd., Total E&P Uganda, and China National Offshore Oil Corp. Uganda Ltd. are currently licensed in Uganda’s Albertine Graben.