Oritsegbubemi Omatseyin
Lagos — Uganda has extended an oil exploration license for Nigeria’s Oranto Petroleum Limited, OPL, by two years after the company asked for compensation for time lost during the COVID-19 pandemic.
Solomon Muyita, the Energy Ministry spokesman, said in an email statement that the permit had been due to expire on December 29 and was initially granted to scour the Ngassa Shallow and Deep areas in the western Hoima and Kikuube districts in 2017.
Extension of the permit is in line with the country’s drive to boost recoverable oil from current levels of 1.4 billion barrels, according to the statement.
A production sharing agreement, royalties, cost of recovery, and profit sharing are part of the terms included in the extension, the ministry said.
In 2017, Oranto was issued two petroleum exploration licenses for the Ngassa Deep and Ngassa Shallow contract areas.
Ruth Nankabirwa, Uganda’s energy minister signed the extension during the function at the ministry headquarters in Kampala, she urged the company to maximise the additional time granted and ensure a successful outcome.
The minister emphasised the importance of the extension, stating that it will contribute to increasing Uganda’s oil volumes.
Currently, Uganda has six billion barrels of oil in place, with 1.4 billion barrels considered recoverable.
Abdul Byakagaba, the general manager of OPL, assured that the company will fulfill the work programme as planned within the designated two-year period.
French oil giant TotalEnergies SE is leading the development of Uganda’s oil fields, alongside China’s Cnooc Limited and Uganda National Oil Co.
Uganda discovered commercial oil deposits in its Albertine Graben basin along its border with the Democratic Republic of Congo in 2006 and aims to commence production in 2025.
