Licence Approvals Would Signal Long-Awaited Upstream Advance

BMI View : U ganda is currently rev iewing nine production applications from Tullow and Total, with licen c es likely to be approved within the next six months , according to an official from Uganda's Energy and Minerals Ministry. In addition, progress in moving the Hoima refinery project along - Kampala's priority - increases the likelihood that it would be more agreeable to granting the two firms ' production licence s . This would finally see the country's long-delayed upstream development make headway . This supports the likelihood that Uganda will become an oil producer from 2017-2018 .

Uganda's dormant upstream segment is making headway towards development. According to a statement on the website of Uganda's Petroleum Exploration & Production (E&P) Department on January 6, the country is currently reviewing nine production applications for discoveries in the Albertine Graben region. Total applied for one production licence, while Tullow Oil applied for the remaining eight. China National Offshore Oil Corporation (CNC) had previously obtained the country's first production licence in September 2013.

While the spokeswoman for the Petroleum E&P Department did not provide a date for when the review process is expected to be concluded, an official from Uganda's Energy and Minerals Ministry said that Ugandan regulators are reportedly in the final stages of evaluating proposed field development plans and that most of the licences are likely to be approved within the next six months, as reported by Upstream.

Sitting On Undeveloped Oil Deposits
Oil Blocks In The Albertine Basin

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This article is tagged to:
Sector: Oil & Gas
Geography: Uganda