Cabinet approves third licensing round of oil blocks in Uganda

The Ugandan Cabinet has approved the third licensing round for exploration of oil blocks.

Addressing journalists at the media centre in Kampala on Thursday, 12 January 2023, State Minister for ICT and National Guidance Godfrey Kabbyanga said the Cabinet in its January 9 sitting granted exploration licences for an initial two-year-old period to Uganda National Oil Company (UNOC) and DGR Energy Turaco Uganda Limited.

He said UNOC has been granted the Kasuruban licence while Energy Turaco Uganda Limited has been granted the Turaco licence.

This means UNOC will undertake exploration of the Kasurubani oil blocks south of Victoria Nile in Buliisa, Hoima and Masindi districts, while DGR will explore the Turaco oil block in Ntoroko District.

Cabinet also approved the signing of production sharing agreements on the same matter.

“Uganda National Oil Company will find suitable Joint Venture Partner(s) within the first exploration period,” Minister Kabbyanga announced.

The development is a big step in Uganda’s oil production journey. The announcement of the Final Investment Decision in February 2022 has already triggered a period of intense infrastructure development in preparation for the country’s first oil in April 2025.

Uganda launched the second licensing round for petroleum exploration during the ninth East African Petroleum Conference and Exhibition in Mombasa, Kenya in May 2019.

This licensing round covered five blocks in the Albertine Graben among which included Block 01 Avivi Area, Block 02 Omuka, Kasuruban, Block 04 Turaco and Block 05 Ngaji. 

Majority of these blocks are in the northern tip of Lake Albert across Nebbi, Nwoya, Buliisa, Masindi and Kiryandongo districts.  

Last year, Ms Irene Bateebe, the Ministry of Energy permanent secretary, said government was exploring other basins that have potential to hold oil and gas. 

“We are currently undertaking exploration work in the Moroto-Kadam basin [in Karamoja] to ascertain the petroleum potential,” she said, noting that the Ministry of Energy was also awaiting Cabinet approval to kick start new exploration activities.