Government issues bid Notice for the Sale of Accumulated Test Crude
23rd March 2015: Government has re-issued a Bid Notice inviting interested firms to purchase the accumulated test crude oil produced during well testing operations in the Albertine Graben.
Approximately 40,000 barrels of test crude oil is stored in specialized containers called Butitainers at four locations in the Albertine Graben namely; Kasamene-1, Ngara-1 and Ngiri-2 well sites in Buliisa district and Tangi Camp in Nwoya district.
Mr. Ernest Rubondo, the Commissioner Petroleum Exploration and Production Department said, “Government wishes to sell the crude oil which was accumulated when carrying out testing of the different wells during appraisal of the respective oil and gas discoveries in the Albertine Graben. Several industries in the country currently use imported Heavy Fuel Oil for different activities in their industries and we expect that these are going to be among the potential bidders for this crude oil”.
When a discovery of oil or gas is made, the licensee is required to appraise the discovery to determine the extent of the discovery and the characteristics of the crude oil therein by drilling additional wells and/or undertaking well testing together with other technical studies.
Mr. Rubondo explained that well testing involves producing crude oil or gas from a petroleum reservoir for a limited period of time to enable understanding of the reservoir in order to adequately plan for its production. Well testing also helps in establishing the characteristics of the crude oil in the reservoir, which informs the design of the production facilities like pipelines, central processing facilities, the refinery and storage facilities. Over 30 of the 116 wells drilled in the Albertine Graben to date have been flow tested resulting in production of this crude oil which is being put up for sale.
Prior to 2010, crude oil produced during well testing in the country was flared which is a world-wide industry practice. Flaring which is now prohibited in Uganda, except for emergency situations, involves burning the crude oil or gas produced during well testing operations.
This will be the first time government is selling crude oil. It is however important to note that this is a sale of test crude which is a small quantity of 40,000 barrels in total compared to the country’s expected rate of 200,000 barrels of oil per day during peak production.
Uganda confirmed commercial petroleum resources in 2006. The country’s estimated in place volume of petroleum resources is 6.5 billion barrels from 21 oil and gas discoveries in the Albertine Graben, which is the most prospective sedimentary basin in the country.
For more details contact
Petroleum Exploration and Production Department
Ministry of Energy and Mineral Development
Email: email@example.com/ firstname.lastname@example.org
Tel: 0414 320714
Fax: 0414 320437
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