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Home » News » Uganda Receive Bids for first Competitive Oil Exploration Licencing Round from Seven Firms

Uganda Receive Bids for first Competitive Oil Exploration Licencing Round from Seven Firms

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Uganda has received seven bids for six oil exploration blocks offered in a licensing round and it plans to chose the winners and sign deals by the end of June, the Ministry of Energy and Mineral Development said .

The firms that submitted bids are: Armour Energy Limited of Australia, WalterSmith Petroman Oil Limited of Nigeria, Oranto Petroleum International Ltd of Nigeria, Niger Delta Petroleum Resources Ltd of Nigeria, Rift Energy Corporation of Canada, Glint Energy LLC of USA and Swala Energy Ltd of Australia.

These were are part of the 16 potential bidders that were issued with the bidding documents on 1st October 2015

 The six blocks on offer comprise of the Ngassa (410 Km2) in Hoima District, Taitai & Karuka (565 Km2) in Buliisa District, Ngaji (895 Km2) in Rukungiri & Kanungu Districts, Mvule (344 Km2) in Moyo and Yumbe Districts together with Turaco (425 Km2) and Kanywantaba (344 Km2) in Ntoroko District.
Oil deposits were discovered in Uganda along its border with Democratic Republic of Congo (DRC) in 2006 but delays in erecting the necessary infrastructure, tax wrangles and the drop in the oil price have delayed the start of production.

 

In the statement, the Ministry of Energy and Mineral Development said seven of the 16 had submitted final bids.

“The attraction of seven bidders is significant, taking into consideration the current low global oil and gas prices,” the statement said, adding that the companies came from Australia, Nigeria, Canada and the United States.

“Government will conclude the licensing round by negotiating with successful bidders, sign production sharing agreements and award exploration licences by the end of June 2016,” the statement said.

The bidding document comprised of the Request for Proposal, Model Production Sharing Agreement 2015 (MPSA), Model Confidentiality Agreement for sale of data, Petroleum (Exploration, Development and Production) (Data Sale) Regulations 2014 and Petroleum (Exploration, Development and Production) (Data Sale) (Amendment), Regulations 2015.

Uganda’s first licensing round is guided by the National Oil and Gas Policy for Uganda (2008) and the Petroleum (Exploration, Development and Production) Act 2013.

 

 

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