Uganda’s oil and gas sector has transitioned from the exploration and appraisal phase to the development phase in preparation for sustainable production of the petroleum resources that have been discovered in the country.
Appraisal drilling, three dimensional (3D) seismic surveys and extended well testing have been undertaken as part of the effort to appraise the oil and gas discoveries made in the country to date. This appraisal work provides a better understanding of the volumes of oil and gas in each of the discoveries made and enables identification of the most efficient methods of producing these volumes.
The licensed oil companies use the data and information acquired during appraisal to prepare Field Development Plans (FDPs) and Petroleum Reservoir Reports (PRRs) which are submitted to Government as part of the application for production licenses.
Of the 21 oil and gas discoveries, 16 have been adequately appraised and 14 of these approved for development.
In August 2016, the Minister of Energy and Mineral Development granted eight (08) petroleum Production Licences (PLs) to Total E&P Uganda B. V. (TEPU) and Tullow Uganda Operations Pty Limited (TUOP). The petroleum PLs were granted for a term of twenty-five (25) years as follows:
- Three (03) petroleum PLs were granted to TEPU as operator of Contract Area -1 (CA-1) and on behalf of CNOOC Uganda Limited (CUL) and TUOP who are the Joint Venture Partners (JVPs). The PLs include; the Ngiri Production Licence, the Jobi-Rii production licence and the Gunya Production Licence.
- Five (05) petroleum PLs were granted to TUOP as operator of Licence Area -2 (LA-2) and on behalf of CUL and TEPU who are JVPs. The production PL include; Kasamene-Wahrindi Production Licence, Kigogole-Ngara Production Licence, Nsoga Production Licence, Ngege Production Licence and Mputa-Nzizi-Waraga Production Licence.
These were in addition to the petroleum Production License issued to CUL over the Kingfisher field in 2012.
The development of these discoveries is being taken forward through two projects, namely; the Kingfisher and Tilenga projects.
Granting the above production licenses marked the country’s entry into the development phase of the petroleum value chain.
Two (2) applications for possible issuance of Production Licences over discoveries Mpyo and Jobi-East are being discussed between the JV partners and Government.