Commodities

Government reviewing 10 oil production licenses

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By FREDERIC MUSISI

Posted  Wednesday, January 8  2014 at  02:00

In Summary

Only China’s CNOOC has so far been awarded a production license.

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Kampala

The government yesterday said it had received and was reviewing applications for production licences from 10 of the 21discoveries in the Albertine Graben.

The Commissioner for Petroleum Exploration and Production Department (PEPD), Mr Ernest Rubondo, said in a statement: “The licensed oil companies in the country, in line with the provisions of the Petroleum (Exploration, Development and Production) Act 2013, have submitted the applications together with the respective Field Development Plans (FDP) and Petroleum Reservoir Reports (PRR).”

UK’s Tullow Oil (PLC), the operator of Exploration Area 2 (EA 2), has to date submitted FDP and PRR reports for eight discoveries namely Mputa, Nzizi, Kigogole, Nsoga, Ngara, Ngege, Kasamene and Wahrindi after completion of appraisal work on them.

Mr Rubondo said government has reviewed the submissions and is in discussion with Tullow with regard to content of the plans. France’s Total E&P, submitted its first application for a production license over the Ngiri discovery in Exploration Area 1 (Buliisa District).

Total may submit five more applications this year in Exploration Area 1, and one for EA 1A.
The commissioner said after receipt of the applications, government is engaging the respective companies in technical discussions over the FDP’s and PRR’s which are submitted along with the application and when consensus is achieved, production licenses will be granted.
“The review process and discussions are based on analysis of the data which the companies acquire during appraisal of the discoveries,” he said.

So far only China’s CNOOC has been awarded a Production license and is due start production by 2017.

musisif@ug.nationmedia.com