Uganda Cabinet Approves Three petroleum production licenses to Total E&P

Uganda cabinet has announced that during its previous sitting on Wednesday 3rd August it approved consideration and approval of a request from the minister of energy to issue three petroleum production licenses to Total E&P UGANDA B.V.

The three production licenses cover discoveries in exploration area 1 of the albertine graben, that is, Ngiri, Jobi-Rii and Gunya to be operated by total E&P Uganda B.V.

The production licenses to be issued have a duration of 25years and can be renewed for an additional 5 years as provided for in the Production sharing agreement(PSA).

The licenses also provide  that where there are oil fields which extend across boundaries of license areas,  it’s agreed that these oil fields will be developed as one unit.

The final investment decision is planned to be taken in 18 months after issuance of the production licenses and first oil is expected in the financial year 2019/2020.

The Petroleum Authority of Uganda will regulate the licensed companies while the National oil company will participate in all licenses to take care of government’s commercial interests.

Total has a 33.33% interest in four blocks in the Lake Albert region, where oil has already been found including the EA-1A block returned to authorities in which the Lyec discovery has been made.

The other blocks include EA-1 (operator), partner in the EA-2 block operated by Tullow Oil, and the EA-3 production block operated by CNOOC, which includes the Kingfisher field, for which the government approved the development plan in 2013.

Total E&P is the main sponsor for the Hoima to Tanga oil pipeline expected to evacuate Uganda’s reserves.