16 firms make it past stage one in bid for oil exploration license

By John Odyek

Government has concluded the first evaluation stage of applications from 17 firms bidding for Uganda's oil exploration license for the six blocks located in the Albertine Graben, Western Uganda and West Nile region.

Fred Kabagambe-Kaliisa, permanent secretary of the ministry of energy and mineral development said yesterday, the firms were evaluated based on their technical competence, financial capabilities, legal qualifications as well as national content and health safety and environment track record.

"16 of the 17 firms that submitted the applications met the evaluation criteria as spelt out in the Request for Qualification document and will therefore proceed to the Request for Proposal stage of this licensing round," Kabagambe-Kaliisa said.

The 16 successful firms are: African Global Resources (JV comprising of Telconet Capital Limited, RT-Global Resources LLC and JSC Tatneft), Russia, Petrica Energy AS (Norway),  Armour Energy Limited (Australia), Oranto Petroleum International Limited (Nigeria),  Tullow Uganda Operations Pty Limited (Ireland), Rift Energy Uganda Limited (Canada).

Others are African Exploration Venture (JV comprising of Rapid Africa Energy Pty Limited and Africa Energy SA Corp)( South Africa),  Niger Delta Petroleum Resources Limited( Nigeria),  Glint Energy, LLC ( USA),  Oil and Natural Gas Corporation Videsh Limited ( India),

Others are SASOL Exploration and Production International Limited (South Africa),  Brightoil Petroleum (Uganda) Limited (Hong Kong/China), Petoil (Uganda) Limited (Turkey), Swala Energy (Uganda) Limited (Australia),  Waltersmith Petroman Oil Limited (Nigeria), MDC Oil and Gas Holding Company, LLC ( United Arab Emirates).

The ministry will in due course issue the request for proposal and the modal production sharing agreement documents to the qualified firms to bid for blocks or a block of their interest after the mandatory acquisition of data in the blocks or a block through the physical data room at the Directorate of Petroleum in Entebbe.

A Production Sharing Agreement (PSA) is a commercial contract between an investor and the state.

According to a PSA, the state grants an investor an exclusive right to develop a mineral deposit/oil and gas field and an investor undertakes to develop such field/deposit using its own resources and at its own risk.

The government and the company agree on how to share production or extraction costs and revenue from exploitation of the resource.

The six biddable blocks comprise of the Ngassa (410 Km2) in Hoima District, Taitai & Karuka (565 Km2) in Buliisa District, Ngaji (895 Km2) in Rukungiri & Kanungu Districts, Mvule (344 Km2) in Moyo and Yumbe Districts together with Turaco (425 Km2) and Kanywantaba (344 Km2) in Ntoroko District.

The news comes at a time when Presidents Yoweri Museveni and Uhuru Kenyatta have agreed on the use of the Northern Route that is Hoima-Lokichar-Lamu Port for the development of the 1,300km US$5b (sh13b) crude oil pipeline.

Kenya is spear heading the development of the crude oil pipeline under the Northern Corridor Infrastructural Projects framework.

Lamu port is expected to be bigger than Mombasa Port and at the moment has under-utilized land sufficient for its development.

This is part of a long term vision to transform the economy of Northern Kenya by developing Lamu Port and- Southern Sudan- Ethiopia Transport Corridor.

Related to the story

More oil companies wanted for oil exploration licenses

Six giants shortlisted for Uganda’s oil project

Oil not cause of earthquake