Business
Oil firms apply for 10 production licencesPublish Date: Jan 07, 2014
Oil firms apply for 10 production licences
  • mail
  • img
This picture taken in 2007 shows the oil exlporation area 3A near Lake Albert
newvision

By Ibrahim Kasita

Exploration and production firms have applied to government for oil production licences a move that underscores the transition of Uganda’s petroleum industry from exploration, appraisal to development and production. 

In a statement issued on Monday, the petroleum exploration and production department at the ministry of energy and mineral development said the applications were for the 10 out of the total 21 discoveries in the Lake Albert basin.

Tullow, which operates block-2, has submitted field development plans and petroleum reservoir reports for eight discoveries after finalising the appraisal work. 

They include Mputa, Nzizi, Kigogole, Nsoga, Ngara, Ngege, Kasamene and Wahrindi after completion of appraisal work on these discoveries. 

The statement said government has reviewed the submissions and is in discussion with the firm about the results which will lead to final decision of either rejecting or approving them.

Similarly, according the statement, Total has submitted an application for a production license of the Ngiri discovery in Exploration Area 1. (Buliisa). 

This is the first application for a production licence submitted by Total since they took over the operatorship of Exploration Area 1 from Tullow during February 2012. 

The application for the Production Licence was submitted to the Minister of Energy and Mineral Development during December, 2013.  

“The licensed oil companies in the country, in-line with the provisions of the Petroleum (Exploration, Development and Production) Act 2013, have submitted the applications together with the respective Field Development Plans (FDP) and Petroleum Reservoir Reports (PRR)”, Ernest Rubondo, the Commissioner stated.

“The review process and discussions are based on analysis of the data which the companies acquire during appraisal of the discoveries”, he said.

Rubondo explained that following receipt of the applications, Government engages the respective company in technical discussions over the reports which are submitted along with the application and when consensus is achieved, a production license is granted. 

“These technical discussions are important because they bring out the pros and cons of the proposed development and align the understanding of the nature and characteristics of the specific petroleum reservoir by both Government and the oil company,” he said. 

Rubondo added that The discussions contribute to ensuring good and efficient management of the petroleum reservoir during production.

On 16th September 2013, Government of Uganda lifted the condition on the Petroleum Production License for the Kingfisher Discovery, operated by CNOOC Uganda Limited following agreement on the petroleum development reports for the field.

The Kingfisher Production License is the first petroleum production license to be issued in the country and marked the country’s entry into the development phase.  

Development of the Kingfisher field is expected to be complete within four years before production can commence.

Appraisal of other discoveries continues

In September 2013, Total the operator of Exploration Area 1 and 1A, applied for extension of the appraisal period for the Jobi, Rii, Gunya, Jobi-East and Mpyo discoveries in EA 1. 

The period of appraisal for the Jobi and Rii discoveries was subsequently extended until June 2014 while the period of appraisal for Jobi-East, Gunya and Mpyo discoveries was extended until December 2014.  

Applications for production licenses for these five discoveries in EA 1 together with that of the Lyec Discovery in EA 1A are therefore expected to be submitted during 2014.
 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
West Nile grid extension on schedule
THE West Nile power grid extension from Nyagak Hydro plant to the rest of the districts is moving steadily with over 46% of the work on the sh44 billion project...
Gov’t allocates sh10b for tarmacking roads
GOVERNMENT has earmarked sh10b for the tarmacking of roads intended to enhance commerce, reduce dust and facilitate mobility in 26 town councils...
Local govt asked to participate in alternative energy planning
Ministry of energy officials and experts from GIZ have urged local government leaders to participate in developing affordable and efficient sources of energy at district level to light up districts instead of the long waiting for the central government to do for them what they can do themselves....
Central Bank begins financial literacy campaign in schools
Bank of Uganda has started a campaign to boost people’s understanding of economic issues affecting them so that they can identify opportunities to exploit....
Shipping firm chief accountant charged in MTN $3.8m fraud
The chief finance officer of Three Ways Shipping Company has been charged with embezzling $3.8m (about sh10b), belonging to telecom company MTN....
Kabila fires CEO of state miner Gecamines for "gross negligence"
Democratic Republic of Congo's President Joseph Kabila has fired the chief executive of the country's state mining company Gecamines for "gross negligence", according to a presidential decree read out on the state television channel....
Should private schools and institutions be given tax exemption?
Yes
No
Can't Say
follow us
subscribe to our news letter