Uganda has announced that it is conducting hydrocarbon exploration in two new regions

Uganda is currently conducting oil exploration in two new regions, where the potential for crude discoveries could potentially augment the East African nation’s verified reserves of 6.5 billion barrels, according to its energy minister on Wednesday.

Nearly two decades ago, commercial quantities of crude oil were discovered in the Albertine Graben basin in the western region of Uganda, near the border with the Democratic Republic of Congo. However, production is not expected to commence until next year.

Energy Minister Ruth Nankabirwa disclosed during a press conference in the capital, Kampala, that government geologists are conducting investigations in two new regions situated in the north and northeast of Uganda.

“In order to evaluate the oil and gas potential of the Moroto-Kadam Basin, the ministry is currently conducting preliminary petroleum exploration studies.” In reference to the two new regions, she stated that comparable surveys have been initiated in the Kyoga Basin.

“Early results suggest the potential for commercial oil and gas in the Moroto-Kadam Basin.”

According to the energy ministry, Uganda has five basins that are suspected to have hydrocarbon potential, with only one, the Albertine, having been successfully explored thus far.

TotalEnergies (TTEF.PA) holds a 56.7% stake in the two oil fields in the Albertine basin, Tilenga and Kingfisher. The remaining share is owned by the Uganda national oil company UNOC and China’s CNOOC (0883.HK).

Disputes with oil companies regarding field development strategy and taxation, as well as a lack of infrastructure and financing to facilitate its development, have all contributed to the delay in commercial production.

Nankabirwa stated that only 72 of the 457 planned wells in the Tilenga and Kingfisher oilfields have been drilled. Additionally, oil companies had submitted a proposal for a liquefied petroleum gas (LPG) facility for which the government intended to issue a license..

The government anticipates a decision from Chinese funders, such as EXIM bank [RIC:RIC:EXIMC.UL] and SINOSURE, who Uganda has been courting to provide credit for the proposed East African Crude Oil Pipeline (EACOP), next month. Nankabirwa stated.

Uganda will be able to export its petroleum through a port on the Indian Ocean coast of Tanzania as a result of the 1,445-kilometer (895-mile) EACOP.