Uganda plans to launch its third oil exploration licensing round in the 2025/2026 fiscal year, aiming to encourage further oil and gas exploration. Specific regions for exploration remain undisclosed. With 6.5 billion barrels of oil reserves and impending production commencement, Uganda is strategically advancing its energy sector while revitalizing its mining industry, notably the Kilembe copper mine.
The Ugandan government is preparing to initiate its third petroleum exploration licensing round, as announced by Energy and Mineral Development Minister Ruth Nankabirwa. Scheduled for the 2025/2026 fiscal year, this new licensing round aims to open additional regions for oil and gas exploration. However, the specific areas designated for exploration have yet to be disclosed, leaving uncertainty surrounding whether they will be located in the Albertine Graben or in the northern and northeastern basins.
Uganda has been advancing its oil and gas initiatives since discovering crude oil in the Albertine Graben nearly two decades ago, with commercial production expected to commence this year. The government is also in the process of redeveloping the Kilembe copper mine, situated near the border with the Democratic Republic of Congo; a selected winner is anticipated to be announced shortly. This mine, dormant since the early 1970s due to fluctuating copper prices and political instability, has an estimated 4 million tonnes of ore rich in copper and cobalt.
These developments reflect Uganda’s commitment to revitalizing its mining sector while concurrently expanding its oil and gas industry. Currently, Uganda possesses approximately 6.5 billion barrels of oil reserves, with an estimated 1.4 billion barrels deemed economically recoverable, primarily located in western Uganda. Active oil development areas include the Kingfisher and Tilenga basins within the Lake Albert Basin.
As of mid-2023, development drilling for Uganda’s East Africa Crude Oil Project has commenced, with the Tilenga project having completed 63 of the 426 planned wells by August 2024, while the Kingfisher project has advanced by drilling nine production wells. This progress underscores Uganda’s strategic advancements in its energy sector and highlights the potential for economic growth in the region.
Uganda has been engaging in oil exploration activities since the discovery of crude oil reserves in the Albertine Graben, which represents a significant opportunity for economic development. The government is eager to augment oil production and is concurrently reviving its mining industry with the redevelopment of sites like the Kilembe copper mine. This dual approach intends to strengthen Uganda’s position in the regional energy market while optimizing its natural resource endowments. The anticipated start of production later this year is a critical part of Uganda’s broader economic strategy, supported by significant reserves of oil and the active development of critical projects.
In conclusion, Uganda’s planned third petroleum exploration licensing round marks a significant step in its oil and gas development strategy. With the anticipation of oil production commencing this year and ongoing advancements in the East Africa Crude Oil Project, Uganda is poised for substantial economic growth. The government’s efforts to redevelop critical mining sites such as Kilembe further illustrate its commitment to leveraging natural resources to enhance economic stability and development.
Original Source: pumps-africa.com
