Government Shortlists 16 firms in Uganda’s First Petroleum Licensing Round

Government of Uganda has concluded the evaluation of Applications for Qualification from the 17 firms that submitted the Applications

Dr. F.A Kabagambe-Kaliisa, Permanent Secretary of the Ministry of Energy & Mineral Development, said: “16 of the 17 firms that submitted the Applications met the evaluation criteria as spelt out in the Request for Qualification document and will therefore proceed to the Request for Proposal stage of this licensing round.  The firms were evaluated based on their technical competence, financial capabilities, legal qualifications as well as National Content and Health Safety and Environment track record.”  

The 16 successful firms are;

  1. African Exploration Venture (JV comprising of Rapid Africa Energy Pty Limited and Africa Energy SA Corp), South Africa
  2. African Global Resources (JV comprising of Telconet Capital Limited, RT-Global Resources LLC and JSC Tatneft),Russia
  3. Armour Energy Limited, Australia
  4. Brightoil Petroleum (Uganda) Limited, Hong Kong/China
  5. Glint Energy, LLC, USA
  6. MDC Oil and Gas Holding Company, LLC, United Arab Emirates
  7. Niger Delta Petroleum Resources Limited, Nigeria
  8. Oil and Natural Gas Corporation Videsh Limited, India
  9. Oranto Petroleum International Limited, Nigeria
  10. Petoil (Uganda) Limited, Turkey
  11. Petrica Energy AS, Norway
  12. Rift Energy Uganda Limited, Canada
  13. SASOL Exploration and Production International Limited, South Africa
  14. Swala Energy (Uganda) Limited, Australia
  15. Tullow Uganda Operations Pty Limited, Ireland
  16. Waltersmith Petroman Oil Limited, Nigeria

The Ministry will in due course issue the Request for Proposal and the Modal Production Sharing Agreement documents to the qualified firms to bid for blocks or a block of their interest after the mandatory acquisition of data in the blocks or a block through the physical Data Room at the Directorate of Petroleum in Entebbe.

The six biddable blocks 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.

communications@petroleum.go.ug  

Uganda’s Licensing Round Applicants Represent Right Blend of Oil Companies.

Uganda’s first competitive licensing round has attracted the right blend of companies required for exploration, development and production of any additional oil and gas resources in the country. 

Petroleum exploration and production companies can be grouped into small, medium, large and major companies using the following market capitalization thresholds:-

  • small if the market cap is less than $5billion;
  • medium if the market cap is between $5bn and $25bn;
  • large if the market cap is above $25bn;and 
  • major if the market capitalization is over $100billion

Currently, Uganda has a blend of companies which include one major, Total whose market capitalization is just over $110.00billion, one large company, CNOOC whose market capitalization is close to $60.00billion and a small company, Tullow Oil with a market capitalization of about $4.00billion.

Regarding the companies which have expressed interest to participate in the country’s first competitive licensing round, two of the 17 companies are large companies; five are medium-sized companies while the others can be considered to be small companies. 

The licensing round has therefore attracted different sizes of companies which is a desirable phenomenon for the industry especially given the unique advantages of each category of companies. The small and medium Exploration and Production companies are known to be good at undertaking exploration especially during the early stage when exploration risk is high; they are also more adaptive, collaborative, nimble, focused and innovative. The majors and large companies, on the other hand, have all the necessary capital and expertise and often buy off small companies that have made discoveries before or during development and production work. 

The aspect of small to mid-sized companies undertaking exploration and subsequently being replaced by large oil companies is an established process in the oil and gas industry worldwide. Companies which start small do also grow as they progressively expand their market capitalization usually through successful exploration. The absence of majors in the applicants for Uganda’s first licensing round is therefore not a measure of the success of the round neither does it disadvantage the eminent expansion of the oil and gas sector in the country. The gradual and phased licensing of the areas with the potential for petroleum production in the country as recommended in the National Oil and Gas Policy of 2008 will indeed continue to facilitate entry and participation of the desirable industry players and hence ensure sustainable creation of value from the country’s oil and gas resources.

Peninah Aheebwa

Ag. Principal Petroleum Officer

Petroleum Directorate, Ministry of Energy and Mineral Development

Programme for the Road Show for Uganda’s First Licensing Round for Petroleum Exploration

The Government of Uganda through the Ministry of Energy and Mineral Development has opened up six blocks in the Albertine Graben for licensing in the first competitive bidding round. Following the issuance of a Request for Qualification (RFQ) inviting interested firms and/or consortia to submit Statements of Qualifications, the Ministry continues to encourage more firms to participate in the upcoming licensing round.

Hon. Eng. Irene Muloni, the Minister for Energy and Mineral Development is pleased to invite your company to attend a licensing round roadshow which will be held at the Montcalm Shoreditch London Tech City Hotel on 17th June 2015 starting from 9:00 am to 4:00 pm. Come listen in to the Minister and her delegation of distinguished speakers from the Government of Uganda as they elaborate the petroleum prospectivity of the available blocks. 

Eng. Irene Muloni announced Uganda’s first licensing round during February 2015.  The six blocks on offer are; Ngassa (410 Km2) in Hoima District, Taitai & Karuka (565 Km2) in Buliisa District, Ngaji (895 Km2), Rukungiri & Kanungu Districts, Mvule (344 Km2) in Moyo and Yumbe Districts together with Turaco (425 Km2) and Kanywantaba (344 Km2) in Ntoroko District. These blocks have both seismic and well data which were acquired by oil companies previously licensed in these areas. Stratigraphic Licensing will be applicable to some of these blocks.

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.  Below is the programme for the roadshow.

 

Activity

Time

Responsible

1

Registration

09.00AM-09.30AM

Schlumberger

2

Welcome remarks (Purpose of the meeting, Programme outline, Introduction)

09.30AM-09.45AM

Mr. Ernest N. T. Rubondo, Ag. Director, Petroleum Directorate

3

Uganda Country Overview  and Statement on the 1st Licensing Round for Petroleum Exploration in Uganda and investment opportunities

09.45-10.30AM -

Hon. Eng. Irene Muloni, Minister of Energy and Mineral development

4

Uganda’s Legal and Regulatory  framework  for  the oil and gas sector

10.30AM-11.00AM

Hon. Fred Ruhindi, Attorney General

4

Discussions

11.00-11.30 AM

All

5

Tea break  at the exhibition booth

11.30AM-12.00 AM

MEMD and Schlumberger

6

Status of Exploration, Development and Prospectivity / Petroleum system of the six blocks announced for licensing in the Albertine Graben

12.00PM-01.00 PM

Mr. Ernest N. T. Rubondo, Ag. Director, Petroleum Directorate

7

Lunch Break

01.00-02.00 PM

Schlumberger

8

Status (coverage, quality and availability) of the acquired data in the Albertine Graben and the announced licensing blocks

02.00-02.30 PM

Mr. Frank Mugisha, Principal Geophysicist

9

Discussions

02.30-03.30 PM

All

10

Meetings 

03.30-04.00 PM

MEMD with Companies

 

Road Show for Uganda’s First Licensing Round For Petroleum Exploration, Development And Production

The Government of Uganda through the Ministry of Energy and Mineral Development has opened up six blocks in the Albertine Graben for licensing in the first competitive bidding round. Following the issuance of a Request for Qualification (RFQ) inviting interested firms and/or consortia to submit Statements of Qualifications, the Ministry continues to encourage more firms to participate in the upcoming licensing round.

Hon. Eng. Irene Muloni, the Minister for Energy and Mineral Development is pleased to invite your company to attend a licensing round roadshow which will be held at the Montcalm Shoreditch London Tech City Hotel on 17th June 2015 starting from 9:00 am to 4:00 pm. Come listen in to the Minister and her delegation of distinguished speakers from the Government of Uganda as they elaborate the petroleum prospectivity of the available blocks. 

Eng. Irene Muloni announced Uganda’s first licensing round during February 2015.  The six blocks on offer are; Ngassa (410 Km2) in Hoima District, Taitai & Karuka (565 Km2) in Buliisa District, Ngaji (895 Km2), Rukungiri & Kanungu Districts, Mvule (344 Km2) in Moyo and Yumbe Districts together with Turaco (425 Km2) and Kanywantaba (344 Km2) in Ntoroko District. These blocks have both seismic and well data which were acquired by oil companies previously licensed in these areas. Stratigraphic Licensing will be applicable to some of these blocks.

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.  

Please click here for more information on the licensing round or visit www.petroleum.go.ug 

Addendum No.1 to Notice of Request for Qualification for the First Licensing Round for Petroleum Exploration, Development and Production in Uganda

All interested parties are hereby informed that the closing date for receipt of applications for qualification has been extended from 29th May to 30th June 2015. The extension has been granted in order to allow interested applicants more time to prepare their applications.

Other details remain unchanged.

The planned schedule of activities has therefore been adjusted accordingly as follows:

a. Publication of Notice of Request for Qualification 25th February, 2015

b. Closing date for receipt of Applications for Qualification 30th June, 2015

c. Evaluation of Expressions Applications for Qualification 1st- 30th July, 2015

d. Display of Qualified Applicants 10th August, 2015

e. Issue of request for Proposal/ bidding document to qualified applicants 20th August,2015

F.A. Kabagambe Kaliisa

Permanent Secretary, Ministry of Energy and Mineral Development

Promotional Events for Uganda’s First Licensing Round for Petroleum Exploration, 2015

The Ministry of Energy and Mineral Development is pleased to inform all potential investors that presentations and an exhibition on Uganda’s first licensing round for petroleum exploration will be made at the following International events;

1. The 12th  Africa Independents Forum 2015; 26th to 27th May, 2015; Adelphi Suites, The Waldorf Hilton, London United Kingdom

2. AAPG Annual Convention and Exhibition, 2015; 31st May to 3rd June, 2015, International Convention Center, Denver, Colorado, USA.

3. Global Petroleum Show 2015; 9th to 11th June, 2015; Stampede Park - Big 4 Building; Calgary, Alberta, Canada

The Ministry invites all interested firms to visit our exhibition booth during these events to get more information on Uganda’s First Licensing Round for Petroleum Exploration and other investment opportunities in Uganda’s emerging oil and gas sector.

For more information contact the Licensing manager on licensing2015@petroleum.go.ug or the Commissioner on pepdebb@petroleum.go.ug

Notice of Request for Qualification for the First Licensing Round for Petroleum Exploration, Development and Production in Uganda (UG/LR 001/2015)

1.    Pursuant to Section 53 (1) of the Petroleum (Exploration, Development, and Production) Act 2013, the Minister with approval of Cabinet announced areas open for bidding for petroleum exploration licenses. Government of Uganda through the Ministry of Energy and Mineral Development, therefore, is preparing for the competitive licensing of the announced areas. This licensing round will cover six blocks in the Albertine Graben (see MAP SHOWING TARGET BLOCKS) which is Uganda’s most prospective sedimentary basin.

2.    The six blocks on offer are:-
a.    The Turaco Block in Semliki area (Ntoroko District) covering an area of 425 Km2.
b.    The Kanywataba Block in Semliki area (Ntoroko District) covering an area of 344 Km2.
c.    The Ngassa Block (Hoima District) which covers an area 410 Km2.
d.    The Taitai and Karuka Block (Buliisa District) covering 565 Km2.
e.    The Ngaji Block (Rukungiri and Kanungu Districts) which covers 895 Km2; and
f.    The Mvule Block (Moyo and Yumbe districts) with a size of 344 Km2.

Stratigraphic licensing will be considered for the Ngassa and Turaco Blocks.

3.    The Ministry of Energy and Mineral Development invites eligible parties to submit sealed applications for qualification to participate in the request for proposal/bidding phase to undertake exploration activities in the above-named Blocks.

4.    The process will be conducted in accordance with the National Oil and Gas Policy for Uganda and the Petroleum Exploration, Development and Production Act, 2013.

5.    Interested eligible applicants may obtain further information and inspect the request for qualification (RFQ) document at the address given in part 6 below from 08:30-16:30 Hrs on working days.

6.    The Request for Qualification Documents will be issued to interested applicants upon payment of the non-refundable fee of USD 20,000 (US Dollars Twenty Thousand only). This payment shall be made to the following bank account. The RFQ can be handpicked or issued by email.

Account Name: Ministry of Energy and Mineral Development
Bank Name: Bank of Uganda
Account Title: Energy and Minerals –NTR
Account No:    000170168000001
Swift Code: UGBAUGKA

Sealed Applications for qualification must be delivered to the address below at or before 29th May, 2015 at 10:00 am Local time.

The Permanent Secretary
Ministry of Energy and Mineral Development
Attn: The Manager, First Licensing Round
Petroleum Exploration, Development and Production Department
Plot 21-29, John stone Road
PO Box 9 Entebbe, Uganda
Email:     licensing2015@petroleum.go.ug
Website: www.petroleum.go.ug

7.    The planned schedule of activities is as follows:
•    Publication of Notice of Request for Qualification - 26 February, 2015
•    Closing date for receipt of Applications for Qualification - 29 May, 2015
•    Evaluation of Expressions Applications for Qualification - 01 to 30 June, 2015
•    Display of Qualified Applicants - 10 July, 2015
•    Issue of Request for Proposal/ bidding document to qualified applicants - 20 July,2015

F.A. KABAGAMBE-KALIISA
PERMANENT SECRETARY

Uganda's First Licensing Round for Petroleum Exploration

1. INTRODUCTION

Government of Uganda has opened up six blocks in the Albertine Graben for licensing in the country’s first competitive bidding round. 

An estimated 6.5 billion barrels of oil in place and 500 billion cubic feet (Bcf) of gas has been confirmed from exploration work in less than 40% of the Albertine Graben.
Less than 10% of the Albertine Graben is currently licensed to three international oil and gas companies (Tullow, Total E&P and CNOOC Uganda Ltd). 

The six blocks are highly prospective areas that were previously licensed and have good data coverage. Stratigraphic Licensing will be applicable to some of the blocks.
This licensing round as guided by the Petroleum (Exploration, Development and Production) Act 2013 and the National Oil and Gas Policy for Uganda (2008)

2.    THE SIX BLOCKS (Click here to download Map Showing the Target Blocks)


Turaco Block located in Ntoroko District (Semliki Area): 2D and 3D seismic surveys were undertaken in the Semliki basin and three exploration wells were drilled on the Turaco prospect in approximately the same geographical position between 1998 and 2004.  All the three wells encountered oil, but the Turaco-3 well was specifically used to test the oil zones.  Different sets of reports are available and the block covers 425 km2.

Kanywantaba Block located in Ntoroko District (Semliki Area): The Kanywantaba prospect was drilled in 2012, but with no indication of oil shows. However, the interpretation of the data showed that the prospect has good potential for hydrocarbons, especially in its north-western part which was not drilled. 2D and 3D seismic data and reports from one well are available. The block covers an area of 344 km2.

Taitai and Karuka Block located in Buliisa District: Three wells Taitai-1, Karuka-1 and Karuka-2 were drilled on Taitai and Karuka prospects in 2007. All the three wells did encounter hydrocarbons.  2D seismic data and different reports are available.  The block is in close neighbourhood to Buliisa and Kaiso-Tonya oil fields.  The block is approximately 565km2

Ngassa Block located in Hoima District: The Ngassa prospect is covered with a significant amount of good quality 2D and 3D seismic data that was acquired between 2003 and 2008. Two slant exploration wells; Ngassa-1 and Ngassa-2 were drilled at the periphery of the prospect in 2007 and 2009 respectively. Both gas and oil shows were encountered by the two wells.  The Ngassa structure is approximately 410km2

Ngaji Block located in Kanungu and Rukungiri Districts: Ngaji-1 well was drilled during 2009 and did not encounter any hydrocarbons. The prospect is heavily faulted and compartmentalized.  However, an optimal location within a good migration passage was not drilled which may explain the failure to encounter hydrocarbons.  Basing on the 2D seismic and Aerogravity data that was acquired, there are other drillable locations in this area.  The areas also have different reports and are approximately 895km2.

Mvule Block located in Moyo and Yumbe districts: About 200 km of high-quality 2D seismic data and Free Tensor Gradiometry was acquired in the Block. One exploration well, Mvule-1 was drilled to a total depth of 589.5m within the Block in 2012. The well did not encounter any hydrocarbons.  Basing on the 2D seismic data, the resource accounting of the hydrocarbons in place in the entire Block indicates highly risked recoverable reserves. Different reports are available and the area is approximate 344km2

3.    LICENSING PROCESS

The Ministry has issued a Request for Qualification (RFQ) inviting interested firms and/or consortia to submit Statements of Qualifications within a period of not less than 3 months for the government to determine their eligibility to participate in this first licensing round.  The qualifying firms will then be issued a detailed request for bids which will be evaluated by the Government. The Companies submitting the best-evaluated bids for each of the blocks will proceed to negotiations with the Government prior to signing production sharing agreements. The licensing round is expected to be concluded with the award of Petroleum Exploration Licenses to successful firms by the end of 2015.

Government Announces First Licensing Round for Petroleum Exploration in Uganda

KAMPALA, Uganda, 24th February 2015 – The Government of Uganda (GoU) has today announced the country’s first open competitive licensing round for petroleum exploration. This licensing round will cover six blocks in the Albertine Graben which is a proven prospective sedimentary basin.

Eng. Irene Muloni, Minister of Energy and Mineral Development said, “We have an estimated 6.5 billion barrels of in-place petroleum resources from exploration work in less than 40% in the Albertine Graben. However, less than 10% of the Albertine Graben is currently licensed and the six blocks targeted for this maiden licensing round have good data coverage.”

The six blocks are; Ngassa (410 Km2) in Hoima District, Taitai & Karuka (565 Km2) in Buliisa District, Ngaji (895 Km2), Rukungiri & Kanungu Districts, Mvule (344 Km2) in Moyo and Yumbe Districts together with Turaco (425 Km2) and Kanywantaba (344 Km2) in Ntoroko District. These blocks have both seismic and well data which were acquired by oil companies previously licensed in these areas. Stratigraphic Licensing will be applicable to some of these blocks.

The Government of Uganda has undertaken resource and risk assessment of the areas proposed for licensing, developed a data room and is making available data packages to prospective investors in preparation for this licensing round. 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.

The announcement follows approval of Cabinet and submission of a report on the Licensing round to Parliament. Eng. Muloni added “In line with the guiding principles of our National Oil and Gas Policy, we are committed to a transparent process developing Uganda’s oil and gas sector. That is why we have not licensed any new acreage for exploration since 2008. This was to enable us to put in place the required legal, regulatory and institutional framework to ensure an open, efficient and competitive licensing process.”

Uganda’s Ministry of Energy and Mineral Development has published a Request for Qualification (RFQ) for the First Licensing Round Round for Petroleum Exploration in Uganda. The qualified firms from this RFQ will be issued a detailed request for bids together with the Modal Production Sharing Agreement (PSA) for the specific blocks. Companies submitting the best-evaluated bid for each of the blocks will proceed to negotiations with the Government prior to signing production sharing agreements. The licensing round is expected to conclude with the award of licenses by the end of 2015.

The main objectives of implementing the licensing round are to offer exploration and production investment opportunities in the country’s oil and gas sector, establish and increase the country’s resource base, enhance the sustainability of petroleum production and thus contribute to the country’s economy through generating revenue to support other productive sectors of the economy. The Ministry will make available more detailed information on the blocks during the upcoming 7th East African Petroleum Conference and Exhibition which will be held in Kigali, Rwanda from 4th to 6th March 2015.

Currently, three international oil companies, Tullow Uganda Operations Pty Limited, Total E&P Uganda and China National Offshore Oil Corporation (CNOOC) Uganda Limited are licensed in Uganda’s Albertine Graben. Twenty-one oil and gas discoveries have been made in Uganda to date, four of which were relinquished to government. Appraisal of 17 of the 21 discoveries has been completed. One production license was issued over the Kingfisher field while discussions on applications for production licenses over 15 fields are in advanced stages.

The Government of Uganda and the companies currently licensed to undertake Petroleum exploration, development and production in the country has entered into a Memorandum of Understanding (MoU) for commercialization of the discovered resources. This MoU includes development of a 60,000 barrels per day refinery, use of crude oil to generate electricity and export of crude oil. Uganda’s refinery project is being developed on a public-private partnership basis.

Following a competitive process, RT Global Resources led consortium from the Federation of Russia has been selected as the preferred bidder to be the lead investor for Uganda’s Refinery Project and acquisition of the required land for the development are in final stages. Plans to develop other supportive infrastructure on a national and regional level are also underway. Commercial production is expected to commence in 2018.

For more details on the Licensing Project and Uganda’s Oil and Gas Sector, visit www.petroleum.go.ug

Media Contact; Commissioner, Petroleum Exploration and Production Department licensing@petroleum.go.ug

Cabinet Approves First open Licensing Round for Petroleum Exploration in Uganda
6th February 2015 - Cabinet has approved plans to open up six blocks in the Albertine Graben for licensing in the country’s first competitive bidding round.

In accordance with Section 52 of the Petroleum Exploration Development and Production Act 2013, State Minister for Energy, Eng. Simon D’ujanga, informed parliament this week that preparations for this bidding round commenced after the new law was put in place and were now culminating with the submission of a report on the plans to Parliament. 

The six blocks are; Semiliki and Kanywataba blocks in Ntoroko District, Ngassa block in Hoima district, Taitai and Karuka block in Buliisa district, Mvule block in Yumbe and Moyo districts and Ngaji block in Kanungu and Rukungiri districts.

The acreage up for licensing comprises of areas where previous exploration efforts have been undertaken.
Heritage Oil and Gas drilled two wells on the Turaco discovery located in the Semliki block. The Kanywataba prospect area reverted to the government in 2012 after the area operator CNOOC drilled a dry well. Ngassa discovery was also reclaimed by the government last year after Tullow’s exploration license expired having drilled two successful wells on the discovery. In the Mvule prospect Area, Neptune Petroleum’s license expired after drilling one dry well in 2012. Dominion Uganda Limited (DUL) did not encounter oil in the well drilled on  Ngagi prospect area in 2010.   All these areas have good coverage of seismic data acquired by previous licensees.

The Petroleum (Exploration, Development and Production) Act, 2013 provides for licensing of areas with the potential for petroleum production in the country to be undertaken through open, transparent and competitive bidding.  Mozambique, Tanzania and Angola together with Norway, UK and India have also recently held licensing rounds.

Government of Uganda plans to invite companies to participate in this licensing round during the first quarter of 2015.
Data Packages

About 40% of Albertine Graben, the most prospective sedimentary basin in the country has been explored. Currently, less than 10% of the area is licensed to three international oil companies.  Uganda's first licensing round will target some of the areas with good data coverage.

The Geological, Geochemical Geophysical data acquired in the Albertine Graben includes;

  •     10,000Km2 geological mapping
  •     10,000km2 aeromagnetic data
  •     10,000 line Km Gravity and Magnetics
  •     Over 7,000 km of 2 Dimensional seismic data
  •      2,000km2 of 3 Dimensional seismic data
  •     116 wells drilled in Albertine Graben

Click here to download List of Data Packages available

1st Licensing Round for Petroleum Exploration, Development and Production in the Albertine Graben

The National Oil and Gas Policy for Uganda (NOGP) provides for efficiency in licensing through competitive bidding. The Petroleum (Exploration, Development, and Production) Act, 2013 provides for licensing of areas with the potential for petroleum production in the country to be undertaken through open, transparent and competitive bidding. Less than 10% of the Albertine Graben, the area with the most significant for potential for petroleum production, is currently under license. Preparation for a competitive licensing round for some of the areas which have good data coverage but are currently not licensed in the Albertine Graben has commenced.

The areas to be put out for licensing include some which were previously licensed to oil companies but were subsequently relinquished or returned to Government. The licensing round will be announced by the Minister of Energy and Mineral Development as required by the Petroleum Act and the announcement will describe the specific aspects of this bidding round. In preparation for the licensing round, data packages are being made available to prospective investors and a data room is being established to facilitate the onsite and remote presentation of the data together with the petroleum and play concepts in these areas to the interested companies.