As part of Uganda oil exploration licensing process, the country’s Ministry of Energy and Mineral Resources has renewed exploration licenses for Nigeria’s Oranto Petroleum Ltd (OPL) and Australia’s Armour Energy. This is after the two licensees fulfilled the work programme for the first phase of the four years license.
Uganda Exploration Licensing – Armour Energy
According to Armour Energy, during the first two years starting 2017 it accomplished various commitments. These includes: desk top hydrocarbon studies, purchase of previously gathered seismic data and reprocessing of same as well as soil sampling for geo-chemical analysis.
The company has in the second year of operations also was in the process of acquiring just over 100 kms of 2D seismic according to its Review of operations and activities for the year ended 30 June 2019 report.
According to the company, the second phase will provide a further 2 year exploration period. During this period, it is planned that an oil well will be drilled subject to the outcome of the current 2D seismic program and funding.
DGR met the tenement expenditure and work program commitments for the first two year period and indemnify Armour for these costs.
Oranto Petroleum Extension
For Oranto, the first exploration phase carried a minimum work program which included undertaking 2D and 3D seismic shooting and reprocessing and amplitude versus offset (AVO) studies.
Following the first of it’s Uganda oil exploration licensing period, Oranto has the option to renew the agreement and commence a second exploration period consisting of additional seismic data acquisition, the drilling of one exploration well and the drilling of one appraisal well contingent upon the success of the first well.
The first two years for Armour ended in June 2019 while Oranto ended in October 2019.
“The first two years period ended in October and they fulfilled the work programme which includes technical studies and using 2 Dimension technology. The minister renewed their licences for the second two years period where they are expected to drill wells,” Gloria Sebikari, spokesperson for the Petroleum Authority of Uganda.
Uganda’s SME’s will benefit from the ongoing exploration work in the country. There are efforts towards ensuring they are ready and have capacity to engage in upstream business.