Uganda to make new oil exploration licenses announcement this week

February 29, 2016 in Business, Companies, Energy, Finance, Hydrocarbons, Investment, Policy by Editor

KAMPALA, FEBRUARY 29- Bidders who made it to the prequalification round for Uganda’s oil blocks will know their fate when the energy ministry makes the much delayed announcement this week. After flagging off the bidding process on February 24, 2015, the government prequalified 17 firms to submit proposals last July.

Sources told 256 Business News that the evaluation process is now complete and the firms that have been selected to enter detailed negotiations for the licenses will be announced during the course of the week.

Six biddable blocks were put on offer last February, attracting interest from more than 100 prospective bidders. At the close of applications last July however, just 17 bidders that met financial requirements had been shortlisted.

Among other conditions, bidders were required to deposit a $20,0000 non-refundable application fee that officials say helped weed out jokers.

Swala Energy Ltd of Australia, South Africa based SASOL Exploration and Production International, India’s Oil and Natural Gas Corporation Videsh Ltd, Petoil Ltd from Turkey, Nigeria’s Atlas Petroleum International Ltd; Oranto Petroleum International Ltd; and Niger delta Petroleum Resources were up against a Russian consortium Africa Global Resources that bid under the Telconet Capital Ltd -Tatneft-Rostec flag, Petrica Energy from Norway, PTT Exploration and Production PCL from Thailand, Glint Energy LLC of US, Rapid Africa Energy (Pty) Ltd of South Africa, Dragon Oil International Ltd of UAE, Brightoil Petroleum Uganda Ltd of Hong Kong, Waltersmith Petroman of Nigeria, Armour Energy Ltd of Australia, and Tullow Ireland affiliate Tullow Uganda.

With 6.5 billion barrels of oil (1.4 billion recoverable) and 500 billion cubic feet of gas in confirmed reserves, Uganda hopes further exploration will push discovered resources to 15 billion barrels.

With the licensing round out of the way, the next pending announcement will be the long overdue award of production licenses to incumbents Total E&P, CNOOC and Tullow Oil.