Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Uganda to finalise oil exploration deal with Nigerian firm

Published 14/06/2017, 09:33 pm
© Reuters.  Uganda to finalise oil exploration deal with Nigerian firm
AJQ
-

KAMPALA, June 14 (Reuters) - Uganda is set to sign on Thursday two oil production sharing agreements with a Nigerian firm, enabling the company to begin exploration work, the government said on Wednesday.

The firm, Oranto Petroleum International, was among a number of companies that bid in the country's first competitive oil exploration licensing round last year, with two other Nigerian firms and Australia's Armour Energy AJQ.AX also getting through to final negotiations for the award of the PSAs.

The ministry of energy and mineral development said the deal with Oranto covers the Ngassa Shallow Play and Ngassa Deep Play exploration blocks located near the southern part of Lake Albert.

Uganda discovered oil in 2006 in the Albertine rift basin along its border with the Democratic Republic of Congo.

Gross crude reserves are estimated by government geologists at 6.5 billion barrels of which between 1.4 to 1.7 billion barrels are considered recoverable. Production is expected to start in 2020.

The first batch of licences that Uganda awarded in the early 2000s were given on a first-come, first-served basis.

But after the discovery of commercially recoverable reserves the country enacted new laws to manage the sector and under those laws exploration licences must be granted on a competitive basis.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.