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All five blocks slated for auction are near Lake Albert (Image: UIOGS)

Uganda’s efforts to attract more

bids in licensing round fall flat

UGANDA UGANDA’S Ministry of Energy and Mineral six offers received thus far. All six were submit-
Development effectively confirmed last week ted after the auctions were launched at the East
that its effort to attract more bids to the country’s African Petroleum Conference and Exhibition,
second oil licensing round had failed. which was held in May 2019.
Earlier this year, the ministry opted to extend The second bidding round includes the fol-
the deadline for submitting offers for the five lowing licence areas: Block 01, also known as
blocks slated for auction from the end of March Avivi, which covers 1,026 square km; Block 02,
until the end of September. It took this step in also known as Omuka, which covers 750 square
the hope of compensating for delays resulting km; Block 03, also known as Kasuruban, which
from the coronavirus (COVID-19) pandemic. covers 1,285 square km; Block 04, also known as
According to the ministry’s Permanent Turaco, which covers 637 square km; and Block
Secretary Robert Kasande, though, officials in 05, also known as Ngaji, which covers 1,230
Kampala have now concluded that they must square km. All five are near Lake Albert.
proceed with the review of the bids it has already Uganda’s oil sector has experienced a num-
received in the second oil licensing round. “We ber of setbacks in recent years. The country’s first
got six applications in total. These are the ones big oil project – originally assigned to Tullow Oil
we are going to evaluate,” he was quoted as say- (UK/Ireland), which has now arranged to sell all
ing by The East African. of its Ugandan assets to Total (France) – is run-
He attributed the low number of bids to the ning behind schedule and is not likely to begin
unfavourable outlook for global oil markets, as production before 2024. Additionally, its first
well as the pandemic, which has led to signifi- licensing round, held in 2017, failed to attract
cant reductions in energy demand. the level of interest anticipated by the Ministry
Kasande did not divulge any details about the of Energy and Mineral Development. ™

Tullow clears last hurdles to Uganda sale

UGANDA TULLOW Oil (UK/Ireland) said last week that Ugandan assets, as well as the transfer of opera-
it was closer to finalising the sale of its Ugandan torship for Block 2, to Total. It also said that the
assets to France’s Total after meeting “all the gov- Ugandan government and the Ugandan Reve-
ernment-related conditions to closing” the deal. nue Authority (URA) had signed a “binding tax
In a statement, the company reported that it agreement that reflects the pre-agreed principles
had secured the Ministry of Energy and Mineral on the tax treatment of the sale of Tullow’s Ugan-
Development’s approval for the transfer of its dan assets to Total.”

Week 43 28•October•2020 www. NEWSBASE .com P13