Uganda Cabinet Endorse Issuance of Oil Production Licences to French Giant Total

The government of Uganda approved a ministerial request to issue Oil Production Licences to French Giant Total Uganda oil has learnt.

According to a cabinet communique, government approved the Minister of Energy and Mineral Development request to issue three production for fields; Ngiri, Jobi-ri and Gunya under exploration area 1 of the Albertine Basin.

“…approved by cabinet at the sitting was consideration and approval of a request by the ministry of energy to allow her issue three petroleum production licences to Total EP Uganda over discoveries in exploration area 1 of the albertine graben…” the statement reads in part.

Total comes second to receive oil production license in Uganda after China National Offshore Oil  Company (CNOOC).  British Private operator Tullow is still lagging.

The communique said government is working to commence Oil production in financial year 2019/2020. However, Uganda oil production is entirely dependent on its export infrastructure and in this case an export pipeline.

In April, Uganda agreed with Tanzania to jointly develop a pipeline from the albertine to Tanzania’s Northeastern Port of Tanga. Ministerial committees from both countries said they are working to see the project complete in less than three years

Uganda says Production licences issued have a duration of 25 years and can be renewed for an additional five years as provided for in the production Sharing Agreement (PSA). Oil PSAs are still classified.

The licence provides that where there are oil fields which extend across boundaries of a licensed area, “it is agreed that these oil fields can be developed as one unit,”

Uganda says final investment decision on the fields by the operator is expected 18 months after the issuance of the production licences and first oil is expected in in 2019.

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