Page 10 - AfrOil Week 01 2020

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PROJECTS & COMPANIES
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UGANDA
THE Petroleum Authority of Uganda (PAU) has authorised two foreign companies to continue exploration work in the Lake Albert region.
In late December, the PAU said it had agreed to let Oranto Petroleum of Nigeria move on to the next stage of exploration under its produc- tion-sharing agreement (PSA) for the Ngassa block. It also said it had done the same for Armour Energy of Australia, which has been exploring the Kanywataba block under a sep- arate PSA.
Both companies secured their exploration licences and PSAs after submitting winning bids in Uganda’s first licensing round, which took place between 2015 and 2017. The explo- ration licences were issued in 2017 and were to remain valid for four years. They also split the exploration phase of the projects into two stages, each lasting two years.
The first of these stages – which included the reprocessing of existing seismic data, the acquisition of new data and the execution of geophysical, geological and feasibility studies in preparation for drilling – ended in October 2019. Oranto and Armour have been working to secure the PAU’s approval to move on to the second stage, which will focus on exploration drilling.
Gloria Sebikari, a spokesperson for the PAU, explained: “The first [two-year] period ended in October, and [the investors] fulfilled the work programme, which includes technical studies and using [2D seismic] technology. The minis- ter [has] renewed their licences for the second [two-year] period, [when] they are expected to drill wells.”
The Ngassa block covers an area of 410 square km. Its prospective sections lie under- water, beneath Lake Albert. Oranto is slated to drill at least one well there during the second stage of exploration. According to previous reports, two deviated wells were sunk at the
block between 2007 and 2009; both of these encountered shows of crude oil and natural gas, but they were never tested.
Kanywataba, meanwhile, covers an area of 344 square km. Armour has said it is optimistic about the site’s prospects following the discov- ery of petroleum at the nearby Kingfisher field. Additionally, it has noted the presence of oil seeps, describing them as evidence that there is crude within the block. ™
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Sylva also talked up the potential for economic gain, saying: “Nigeria needs a project like that because the country needs to drive activities. There’s no magic about creating jobs in the oil industry. The only way to create jobs in the industry is to create activities in the industry. So if an Ogidigben project starts, a project worth $16bn in the Niger Delta, you can only imagine how many jobs will be created.”
He also stressed that the federal government would require support from local authorities with respect to security issues. “As a govern- ment, we are keen on that project and we are discussing it, but what we are also asking for from the communities and the entire Niger Delta region is peace in the whole of the area so that we can focus on the development of projects and create jobs in the region,” he commented. ™
Uganda gives Oranto, Armour
permission to proceed with exploration
Both companies are ready to begin the second stage of their search for oil near Lake Albert
Both companies are expected to start exploration drilling (Image: Tullow Oil)
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w w w. N E W S B A S E . c o m Week 01 08•January•2020