Uganda plans to launch its third petroleum exploration licensing round in the 2025/2026 fiscal year, focusing on enhancing oil and gas exploration. The country’s oil reserves are estimated at 6.5 billion barrels, with 1.4 billion barrels expected to be economically recoverable. Additionally, the government is nearing a redevelopment agreement for the dormant Kilembe copper mine, reinforcing its commitment to economic revitalization in the energy sector.
The government of Uganda has declared its intention to initiate the third round of petroleum exploration licensing, as announced by Minister of Energy and Mineral Development, Ruth Nankabirwa. This important step is scheduled for the 2025/2026 fiscal year, extending opportunities for additional oil and gas exploration. However, specific details regarding the targeted regions—be it in the Albertine Graben or the northern and northeastern basins—remain undisclosed.
Having discovered substantial crude oil reserves in the Albertine Graben nearly twenty years ago, Uganda is poised for its first production this year. Furthermore, the government is nearing the final negotiations for the redevelopment of the Kilembe copper mine, which is situated close to the border with the Democratic Republic of the Congo. This mine has an estimated yield of 4 million tonnes of ore at grades of 1.98% copper and 0.17% cobalt, albeit having faced dormancy since the early 1970s due to fluctuating copper prices and political upheaval, particularly after the exit of Canadian company Falconbridge.
These developments illustrate Uganda’s commitment to revitalizing its mining sector and advancing its oil and gas industries. National oil reserves are estimated at 6.5 billion barrels, of which approximately 1.4 billion barrels are deemed economically recoverable. The majority of these reserves are located in western Uganda, along the border adjacent to the Democratic Republic of the Congo, particularly within the Kingfisher and Tilenga basins, which are pivotal for oil extraction.
As part of the East Africa Crude Oil Project, development drilling has been ongoing since mid-2023. By August 2024, the Tilenga project had successfully completed 63 of the anticipated 426 wells, while the Kingfisher project had drilled nine production wells, showing promising advances in Uganda’s oil production capabilities.
Uganda’s oil and gas industry has seen significant advancements since the discovery of crude oil in the Albertine Graben region nearly two decades ago. The government has been actively working on projects aimed at both oil production and the revitalization of its mining sector, including the redevelopment of the Kilembe copper mine. The country holds substantial oil reserves, positioning itself as a key player in East Africa’s energy landscape, with ongoing projects aimed at commencing production in the near future. The third petroleum exploration licensing round aims to open further areas for exploration, which is crucial for expanding Uganda’s energy portfolio and economic growth.
In conclusion, Uganda’s announcement of the third petroleum exploration licensing round is a significant step towards bolstering its oil and gas industry. With ongoing developments in key projects and an eye towards further exploration, Uganda aims to leverage its substantial natural resources. The government’s efforts to revitalize both the mining and petroleum sectors reaffirm its commitment to economic growth and energy sustainability in the region.
Original Source: pumps-africa.com
