AN OVERVIEW OF UGANDA’S UPSTREAM PETROLEUM SECTOR
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AN OVERVIEW OF UGANDA’S UPSTREAM PETROLEUM SECTOR. PRESENTATION OUTLINE. 1. Introduction 2. Developments in Uganda’s Oil and Gas Sector History of Exploration Results to-date Current status 3. The National Oil and Gas Policy of Uganda The Policy Framework

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AN OVERVIEW OF UGANDA’S UPSTREAM PETROLEUM SECTOR

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An overview of uganda s upstream petroleum sector

AN OVERVIEW OF UGANDA’S UPSTREAM PETROLEUM SECTOR


Presentation outline

PRESENTATION OUTLINE

1. Introduction

2. Developments in Uganda’s Oil and Gas Sector

  • History of Exploration

  • Results to-date

  • Current status

    3. The National Oil and Gas Policy of Uganda

  • The Policy Framework

  • Operationalization of the Policy

  • Legislation

    4. Investment opportunities in Uganda’s Hydrocarbon Industry

    5. Conclusion


An overview of uganda s upstream petroleum sector

Afar Depression

Abu Graben

Aswa Shear zone

Albertine Graben

Lake Albert

Eastern Arm

Lake

Tanganyika

Lake Malawi

1. INTRODUCTION (1)

THE ALBERTINE GRABEN

  • The area with the highest potential for petroleum production in Uganda is the Albertine Graben

  • The Graben forms the northern most part of the Western arm of the East African Rift System

  • It is a Tertiary rift, 500 km long, averaging 45 km wide and 23,000 sq km

Tanzanian

Craton


An overview of uganda s upstream petroleum sector

Afar Depression

Abu Graben

Aswa Shear zone

Albertine Graben

Lake Albert

Eastern Arm

Lake

Tanganyika

Lake Malawi

1. INTRODUCTION (2)

LOCATION OF THE ALBERTINE GRABEN AND THE EAST AFRICAN RIFT SYSTEM (EARS)

EARS

Tanzanian

Craton

ALBERTINE GRABEN


An overview of uganda s upstream petroleum sector

2. DEVELOPMENTS IN UGANDA’S OIL AND GAS SECTOR(1)

HISTORYOFEXPLORATION

1920 – 1950: PRELIMINARY EXPLORATION

  • Reporting of oil seepages

  • Drilling of Waki-B1 in 1938

  • Some shallow stratigraphic wells drilled in the areas of Kibiro and Kibuku based on oil seep observations

  • Initially due to World War II

  • Colonial Policy

  • Later due to political uncertainties

1950 – EARLY 1980’s: STAGNATION


An overview of uganda s upstream petroleum sector

2. DEVELOPMENTS IN UGANDA’S OIL AND GAS SECTOR (2)

1980’s to Date: CONSISTENT AND MODERN EFFORTS

  • 1983: Acquisition of Aeromagnetic Data over the entire Albertine Graben; indication of three main depocentres conductive for petroleum generation

  • 1985: Enactment of the Petroleum Exploration and Production Act

  • 1986: First specialized training in petroleum aspects

  • 1991: Formation of PEPD


2 developments in uganda s oil and gas sector 3

2. DEVELOPMENTS IN UGANDA’S OIL AND GAS SECTOR (3)

EXPLORATION AND PROMOTION

  • Acquiring of geological, geochemical and geophysical data in the field, packaging the acquired data into promotional materials and presenting them to the oil industry at different fora.

  • Also the data (seismic and well data) were acquired by licensed oil companies were used to improve on the geological understanding of the Albertine Graben.


2 developments in uganda s oil and gas sector 4

2. DEVELOPMENTS IN UGANDA’S OIL AND GAS SECTOR (4)

EXPLORATION AND PROMOTION Contd.

  • The Oil and Natural Gas Commission of India (ONGC) together with the Indian Government have been very instrumental in training our professional staff especially the practical aspects of the industry.

  • This promotion was successful and four oil companies are currently licensed in five of the country’s ten demarcated Exploration Areas. The companies have acquired seismic data and drilled several wells.


An overview of uganda s upstream petroleum sector

2. DEVELOPMENTS IN UGANDA’S OIL AND GAS SECTOR (5)

STATUS OF LICENSING

  • Albertine Graben is sub divided into 10 Exploration Areas (EAs)

  • 5 active Production Sharing Agreements (PSAs)

  • 4 PSA Operators


An overview of uganda s upstream petroleum sector

2. DEVELOPMENTS IN UGANDA’S OIL AND GAS SECTOR (6)

SEISMIC DATA COVERAGE

  • 5,855 line km of 2D seismic data

    • 2,200km on Lake Albert

    • 3,655km on land

  • 1,202km2 of 3D seismic data


An overview of uganda s upstream petroleum sector

2. DEVELOPMENTS IN UGANDA’S OIL AND GAS SECTOR (7)

DRILLED WELLS

  • A total of 34 wells have been drilled in EA 1, 2 and 3A. 32 wells have found hydrocarbons.

  • Reserves estimated at 2 billion boe.

  • Production capacity of over 100,000 bopd for 25 years

  • More exploration ongoing.

Most of the wells have encountered oil and/or gas


2 3 current status

2.3 CURRENT STATUS

  • Government is evaluating to put in place an Early Production Scheme in the short term to alleviate the current acute power shortfall through utilisation of gas reserves

  • Government is also considering to conduct refining of oil on a large scale in the medium term.

  • Government has commenced planning for large scale refining in the country by undertaking a feasibility study for this refining.

  • This feasibility study which will recommend the type, size and other aspects of the facility is expected to be concluded early next year.


3 the national oil and gas policy for uganda 2

3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (2)

Confirmation of commercially exploitable quantities of oil and gas raises the following key issues:

Institutional Development

Size of Reserves

Oil and Gas Revenue Management

Impact of Oil and Gas Activities

Contribution of Oil and Gas Resources to the Energy Mix

Investment Promotion

National Participation

Public Anxiety and Expectations


An overview of uganda s upstream petroleum sector

To deal with the emerging challenges, a new policy, the National Oil and Gas Policy for Uganda has been put in place.

The Policy formulated through wide consultations and was enacted in February 2008.

The goal of the policy is to use the country’s oil and gas resources to contribute to early achievement of poverty eradication and create lasting value to society.

3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (3)

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Institutional framework

InstitutionalFramework

3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (4)

The policy recognizes the need to enhance the current institutional framework which was set up to facilitate the promotion and exploration for oil and gas.

The policy recommends setting up of the following three separate institutions:

  • Oil and Gas Policy Making and Monitoring Body

    • Directorate of Petroleum in the Ministry responsible for oil and gas

  • Regulatory Agency

    • Petroleum Authority of Uganda (PAU)

  • Separate Commercial Entity

    • National Oil Company (NATOIL)


An overview of uganda s upstream petroleum sector

3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (5)

A new petroleum legal framework - emplacement of a Resource Management Law, and a Revenue Management Law.

An efficient Resource Management system, through the creation of a sound Institutional Framework which separates Policy Setting and Business Promotion from Regulation of the Industry and Commercial Businesses.

Creation of a Directorate of Petroleum in the Ministry responsible for oil and gas; a Petroleum Authority of Uganda; and a National Oil Company.

Ensuring optimum national participation in oil and gas activities to cater for the local content.

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3 the national oil and gas policy for uganda 6

3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (6

  • Development of a communication strategy to bridge the information gap between the oil and gas industry and the general public.

  • Putting in place a Petroleum Fund which will house revenues accrued from the oil and gas sector and use of these funds on projects which create durable wealth.

  • Development of specialised skills required in the oil and gas industry through the establishment of training institutions


3 the national oil and gas policy for uganda 7

3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (7)

LEGISLATION

  • Resource Management Law (Licensing, Institutional Framework, Production, Treatment of Royalties, Data management, Local content)

  • Revenue Management Law (Petroleum Fund, Utilizations of Revenues).


An overview of uganda s upstream petroleum sector

4. INVESTMENT OPPORTUNITIES IN UGANDA’S HYDROCARBON SECTOR

  • Participation in licenses for the new and relinquished acreage licenses.

  • Joint Ventures and firm in arrangements in licences held by small independents.

  • Capital for the emerging infrastructure such as refining and transportation of commodities and hydrocarbon products

  • Service provision and contracts in the fields of Engineering, Procurement, Construction, Catering, Analytical Laboratories, Waste management, etc., for the upstream and midstream facilities.

  • Power generation by Independent Power Projects.


Incentives available

Incentives available

Well liberalised economy,

Tax incentives on equipment,

Repatriation of income,

Conducive contracting;

and regulatory framework.


An overview of uganda s upstream petroleum sector

5. CONCLUSIONS

1. Commercially Exploitable Reserves of oil and gas have now been confirmed in Uganda and the country is considering setting up a refinery.

2. The oil industry in Uganda has potential of providing a lot of investment opportunities to oil companies and other investors in the industry.

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An overview of uganda s upstream petroleum sector

Thank You

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