Uganda Invites Four Oil Companies To Negotiate Production Sharing Agreements

The Ministry of Energy and Mineral Development has invited four foreign oil companies to negotiate Production Sharing Agreements (PSAs) in Uganda’s first competitive licensing round. The ministry said it has completed evaluation of bids submitted by over ten oil companies and is ready to negotiate with successful companies. The successful companies are Armour Energy Limited of Australia for the Kanywataba Block, to negotiate Production Sharing Agreements (PSAs), WalterSmithPetroman Oil Limited of Nigeria, for the Shallow and Deep Plays in the Turaco area, Oranto Petroleum International Ltd of Nigeria for the Shallow and Deep Plays in the Ngassa area and Niger Delta Petroleum Resources Ltd of Nigeria for the Shallow and Deep Plays in the Ngassa area. In a press statement released on Monday, the energy ministry said government of Uganda will negotiate five PSAs with these companies and issue five exploration licenses, upon successful negotiation. The five PSAs are one…

MPs Want Government To End Oil Secrecy

Members of the Parliamentary Forum on Oil and Gas in Uganda’s tenth Parliament are demanding that government ends the culture of secrecy currently surrounding the country’s young oil industry. The call was made during a meeting at which the Directorate of Petroleum at the Ministry of Energy and Mineral Development met Members of Parliament to up them on the progress made in the oil and gas sector, Infrastructure Development, and Petroleum related regulations. Theodore Ssekikubo, the chairperson of the Parliamentary Forum, while speaking at a meeting lamented that the oil and gas sector is still engrossed in a culture of secrecy and that it must end. “Whereas a number of efforts have been undertaken by the government such as the development of a strong policy, legal and institutional framework, it is still difficult even for Parliament to access information which is pertinent to fostering the much required transparency and accountability…

Tullow Reach Exploration Agreement With Kenya

Oil and gas Exploration Company Tullow Oil has said it has extended exploration period for Blocks 10BB and 13T in South Lokichar to 18 September 2020 after successful talks with the government of Kenya, oil in Kenya news website reported on Wednesday. The website noted the mandate for Tullow to run the mentioned blocks was set to expire in July and September 2017. Tullow expects to restart drilling activities in the South Lokichar basin in the fourth quarter of 2016 with Etete and Erut prospects in the Etom Complex first on the line. These are two of the four wells expected to be drilled in the South Lokichar basin starting Q4 and the potential to extend this by a further four wells. Other potential prospects in the programme include further appraisal of the Ngamia and Amosing fields to target un-drilled volumes, with an aim of extending the size of these…

Tullow’s Project In Ghana To Start Oil Production In August

British oil exploration company Tullow Oil has revealed that they expect to start oil production at the Tweneboa Enyenra Ntomme (TEN field) project off the coast of Ghana, next month. In May 2013, the Government of Ghana approved the TEN Plan of Development, Tullow’s second major operated deepwater development project. The company’s chief executive officer Aidan Heavy described the stage as ‘transformational’ for the Group explaining that this will ‘significantly increase our net production and begin the process of deleveraging our balance sheet’. Tullow expects production to peak at about 80,000 barrels of oil per day. “This project has remained on schedule and on budget since the day the Plan of Development was signed and demonstrates our ability to deliver complex projects of this nature,” Heavy says in an official statement which also carried the firm’s half year results ending 30 June 2016. The company said it was able to…

Oil Ministry Denies Licensing Nigerians

The Ministry of Energy and Mineral Development has refuted claims that it has licensed two Nigerian companies to undertake oil and gas exploration activities as reported by news outlets in Nigeria. The Daily Trust newspaper in Nigeria quoting Africa oil and gas magazine reported that Waltersmith Petroman Oil Limited and Niger Delta Petroleum Resources (NDPR) who are apparently combined with Oranto Petroleum have been allocated two acreages in the Albertine Graben in western Uganda. The newspaper said Waltersmith has won the Turaco shallow and deep acreage while Niger Delta Petroleum Resources has been given Ngassa block. However an official at the energy ministry in Kampala who declined not to be named because he doesn’t speak for the ministry said this was not true before referring to the communication department. When contacted for clarification, Ibrahim Kasita, the communications specialist at the ministry, denied the report saying they has not reached such…

Oil Delays Worrying – Bank Of Uganda

The delayed production of oil and gas is worrying and could cause a debt distress to Uganda, Adam Mugume, executive director for research at Bank of Uganda, told Reuter’s Erias Baryamureeba in an interview this week. "We have pushed oil very far, every now and then we're not ready. We should start now getting worried about debt distress.” Reuters quotes Mugume who warned that the country’s debt load could become problematic if Uganda does not begin exporting crude soon. Mugume told Reuters that Uganda will be having a serious challenge and struggle with debt repayments in two to three years. According to Reuters, Uganda’s Total external debt stood at $10.3 billion in May, mostly money borrowed to fund infrastructure projects like roads and hydro power generation. Despite discovering oil and gas in the albertine graben in 2006, Uganda has not moved into production stage. This delay has been a concern…

Summit To Discuss Oil And Gas In East Africa

The East African Oil and Gas Summit and Exhibition (EAOGS) returns this year on 15-17 November, 2016 at the iconic Kenyatta International Convention Center (KICC) in Nairobi, Kenya. The Summit, the fourth of its kind, which has the official endorsement of the Ministry of Energy & Petroleum Kenya, has firmly established itself as the most prestigious oil and gas conference and exhibition in East Africa. According to the organizers, this year’s EAOGS will build on the success of the 2014 Summit which welcomed over 450 delegates from 380 regional and international companies and 30 different countries. Alex Budden, VP External Relations, Africa Oil Corp., which will be this year’s gold sponsor says the annual summit has proven to be the most productive regional event bringing together key decision makers in government, industry, civil society and wider stakeholders who are able to discuss, and act on, the key opportunities and challenges…

Construction Of Uganda-Tanzania Pipeline To Start In January

The Minister of Energy and Minerals Development of Uganda, Irene Muloni, told journalists last week that Construction of the Uganda-Tanzania crude oil export pipeline will start in January, 2017. The pipeline will export Uganda’s crude oil from Hoima in western Uganda through Tanzania’s port of Tanga to the world market in crude form. Stakeholders from Uganda and Tanzania while meeting in Hoima also agreed that the 1,443 kilometers pipeline construction works should be completed in 2020. Muloni said every aspect of the project will be fast-tracked to speed up the process. Muloni hosted her counterpart Prof. Sospeter Muhongo the Minister of Energy and Minerals of the United Republic of Tanzania at the Second Ministerial Meeting on Uganda – Tanzania Crude Oil Export Pipeline Development. The meeting was held in Hoima Uganda on 5th July 2016. The meeting was also attended Peter Lokeris the Minister of State for Minerals Uganda, Dr.…

Tanzania Wants 8% Stake In Uganda Oil Refinery

Tanzania has expressed interest to acquire an 8% stake in Uganda’s oil refinery which will be built in Hoima district, western Uganda. Uganda is willing to offer 8% of the refinery stake to her neighboring partner state but Tanzania expressed willingness to take it all. Tanzania has already partnered with Uganda to build a crude oil export pipeline from Hoima to the Port of Tanga in Tanzania. Tanzania Minister of Energy Professor Sospeter Muhongo said his country was eager to partake the opportunity to invest in the refinery. The minister was in Uganda last week to discuss details of the export pipeline at the Second Ministerial Meeting on Uganda) – Tanzania Crude Oil Export Pipeline Development. The minister, his technical team, officials from Tanzania Petroleum Development Corporation (TPDC) and Tanga Ports Authority (TPA) visited the site where the refinery will constructed in Kabaale parish, Buseruka Sub County, Hoima district. “We…

Tanzania Okays Norwegian Firm To Drill Helium Gas

Overzealous Tanzanian authorities have ordered Helium One Company of Norway to start the drilling of Helium gas recently discovered in the Lake Rukwa area, Southern Tanzania. The discovered Helium is estimated to be 54 billion cubic feet (BCf) and also estimated to be worth $3.5 billion. Tanzania’s minister of energy and minerals, Prof. Sospeter Muhongo in a published statement in June revealed that scientists from Tanzania Geological Survey and Helium One in collaboration with scientists from Oxford and Durham universities discovered a huge Helium gas deposit in Lake Rukwa area. In a new directive calling for action, the minister said: “I have spoken with Mr. Thomas Abraham-James, the chief executive officer of Helium One and I have urged him to start immediately.” The minister had earlier described the discovery as ‘a very commendable development” and that Tanzania ‘will surely make it as a nation’ using Helium. Magufuli cautious Tanzanian President…
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