Uganda Anticipates Increased Investor Interest in the Oil Sector

Since kicking off its second licensing round for five oil blocks in the Albertine Graben for further exploration earlier this year, Uganda expects to see an increase in investments into its oil sector in 2020.

With an estimated six billion barrels in oil reserves – some of the largest in sub-Saharan Africa, the country’s Energy and Minerals Minister, H.E. Irene Muloni, said the country is continuing its efforts to attract investment into its energy sector. “We hope by the end of next year, we will have new investors for these five blocks,” said Minister Muloni in a recent interview.

“So far, we have five international oil companies that already have interest and are doing work in Uganda. We have issued nine production licenses, one to CNOOC, three to Total E&P and five to Tullow oil,” she said, explaining that Australia’s Armour Energy Limited and pan-African explorer, Oranto Petroleum are currently conducting exploration activities.

“There is a lot of money that needs to be sunk into exploration and development before you go into production,” the Minister added.

The blocks on offer include Avivi with an area coverage of 1026km2, Omuka (750km2), Kasuruban (1285km2), Turaco (637km2), and Ngaji (1230km2).

Minister Muloni said beyond the licensing round, the country is also moving forward with its participation in the East African Power Pool project, which will ensure the regions power efficiency and sustainability.

Additionally, she said the landlocked country is further developing its renewable energy sector and, expects to see 2000MW coming online by the end of 2019.

“We are tapping into solar, we have geothermal potential, we have biomass. We are tapping into renewable energy as much as possible.”