(3 minutes read)
Uganda is on a continuous spell to augment its oil resources. The Government has told the Uganda National Oil Company (UNOC) to start oil exploration in the Kasurubani Contract Area. This area spans over 1,285 kilometres across the districts of Masindi, Hoima, and Buliisa
Uganda is on a continuous spell to augment its oil resources. The government has told the Uganda National Oil Company (UNOC) to start oil exploration in the Kasurubani Contract Area. This area spans over 1,285 kilometres across the districts of Masindi, Hoima, and Buliisa.
Recently, the government has issued a petroleum exploration licence and the signing of a production-sharing agreement between the government and the oil company. The agreement spells out how oil benefits such as royalties, cost, and profit oil will be shared in percentage terms once a discovery is made.
UNOC’s principal shareholders; the Ministry of Finance, and the Ministry of Energy witnessed the signing of the agreement recently at the Ministry of Energy headquarters led by Energy minister, Ruth Nankabirwa.
UNOC are the new entrants to contribute to the establishment of additional petroleum reserves to the current resource of 6.0 billion barrels of oil and recoverable reserve of 1.4 billion barrels of oil in the country. The national oil company now has to tie up with a suitable joint venture partner to engage in the exploration.
Read Also:
https://trendsnafrica.com/uganda-begins-oil-drilling-operations/
https://trendsnafrica.com/uganda-turning-to-turkey-to-revive-the-standard-gauge-railway-project/
Cabinet in a last month’s meeting, approved the signing of production, sharing agreements and granted exploration licences for an initial two-year period to UNOC for the Kasurubani block. Also, DGR Energy Turaco Uganda SMC Limited was granted a license for exploration. UNOC and DGR-Global – the two successful companies from the Second Licensing Round commenced operations in May 2019. Six oil companies applied for prequalification for the five blocks on offer, and four were shortlisted. The third round of auction is on the anvil.
