Government has granted two petroleum exploration licenses and signed the Production Sharing Agreements with Nigerian oil firm Oranto Petroleum Limited to carry out oil exploration in the Ngassa Block in oil rich Albertine region.
The agreements were signed on Tuesday between Energy Minister Eng. Irene Muloni and Prince Arthur Eze, the Chairman of Oranto Petroleum at the Ministry of Energy headquarters in Kampala.
The license will see Oranto explore for four years split in two; the first and second exploration each lasting two years.
Ngassa exploration block is made up of Ngassa Shallow Play and Ngassa Deep Play totalling to 410 square kilometers of shallow and deep water acreage in Lake Albert, contiguous to major coastal petroleum discoveries.
“We are excited to enter this agreement with the Government of Uganda and look forward to a successful exploration period,” said Prince Arthur Eze, Chairman of Oranto Petroleum.
“Lake Albert is home to some prime petroleum acreage and we hope to make a valuable contribution to the country and its people.”
Oranto joins Australia’s Armour energy as companies who have benefited from the 1st licensing round after the latter was given an exploration license for the Kanywataba block.
According to Uganda’s Energy Minister, Irene Muloni, issuing the licenses over Ngassa block marks a successful end to the first licensing round as government is yet to grant license to three remaining blocks (Ngajj, Karuka and Taitai)
“During the first two years, the company will reprocess existing seismic data, acquire new seismic data, and carry out geological and geophysical studies as well as feasibility studies for drilling from the lake with a minimum expenditure of USD 2.4 million,” Eng. Muloni said.
In the subsequent two years, Oranto Petroleum will acquire more seimic data as well as construct a drilling facility and drill at least one well on the lake at a minimum expenditure of USD 29 million.
Oranto has for over two decades worked in the field of oil exploration in nine countries and Arthur Eze assured government that the firm will deliver as contractual terms require.
Just last month, government granted oil exploration licenses with Australian firm Armour Energy Limited covering Kanywataba block, a 344 square kilometres area.
