Uganda Expands Oil Exploration to Two New Regions
Uganda is embarking on oil exploration in two new regions that could significantly boost the country’s proven crude reserves, which currently stand at 6.5 billion barrels, Energy Minister Ruth Nankabirwa announced on Wednesday.
The discovery of commercial quantities of crude oil in the Albertine Graben basin, located in the west of Uganda near the border with the Democratic Republic of Congo, was made nearly 20 years ago. However, production from this basin is not expected to commence until next year.
Nankabirwa revealed that government geologists are now investigating the oil potential in two new areas: the Moroto-Kadam Basin in the northeast and the Kyoga Basin in the north. Preliminary studies in these regions show promise.
“The ministry is conducting initial exploration studies in the Moroto-Kadam Basin and the Kyoga Basin to evaluate their oil and gas potential,” Nankabirwa said. “Early results indicate that the Moroto-Kadam Basin may have significant commercial oil and gas potential.”
Uganda has five identified basins with suspected hydrocarbon potential, but only the Albertine basin has been extensively explored so far. Within the Albertine basin, the Tilenga and Kingfisher fields are predominantly owned by TotalEnergies (56.7% stake), with China’s CNOOC and the Uganda National Oil Company (UNOC) holding the remainder.
Commercial production has faced delays due to various challenges, including disputes with oil companies over field development and taxation, as well as a lack of infrastructure and funding. Currently, only 72 of the 457 planned wells in the Tilenga and Kingfisher fields have been drilled.
The government is also awaiting a decision next month from Chinese financiers, including EXIM Bank and SINOSURE, regarding funding for the East African Crude Oil Pipeline (EACOP). This 1,445-kilometer pipeline will facilitate the export of Ugandan crude oil through a port on Tanzania’s Indian Ocean coast.
Additionally, oil companies have proposed a liquefied petroleum gas (LPG) facility, for which the government plans to issue a license soon.