Uganda plans to launch its third petroleum exploration licensing round in 2025/2026, opening further areas for oil and gas exploration. The government anticipates beginning oil production this year, with significant efforts to revive the Kilembe copper mine. Uganda possesses 6.5 billion barrels of oil reserves, with ongoing drilling for the East Africa Crude Oil Project, indicating a robust strategy for economic rejuvenation.
The government of Uganda is preparing to initiate its third licensing round for petroleum exploration, as announced by Energy and Mineral Development Minister Ruth Nankabirwa. This licensing round is scheduled to commence in the fiscal year 2025/2026, spanning from July to June. While this new phase will potentially open additional areas for exploration, specific details regarding the targeted regions, including whether they will occur in the Albertine Graben or other basins, remain undisclosed.
Having discovered crude oil in the Albertine Graben nearly two decades ago, Uganda anticipates commencing production within this year. Furthermore, the government is finalizing the redevelopment of the Kilembe copper mine, situated near the border with the Democratic Republic of Congo, which has remained inactive since the early 1970s due to fluctuating copper prices and political challenges.
Uganda’s mining sector and oil and gas industry are experiencing revitalization efforts, highlighted by the significant oil reserves of 6.5 billion barrels, with approximately 1.4 billion barrels being economically recoverable. The majority of these reserves are located in western Uganda, adjacent to the Democratic Republic of Congo, particularly within the active Kingfisher and Tilenga basins of the Lake Albert Basin. Development drilling for Uganda’s East Africa Crude Oil Project has been ongoing since mid-2023, with steady progress noted in both the Tilenga and Kingfisher projects.
The upcoming licensing round is a strategic move by the Ugandan government to further develop its burgeoning oil and gas sector, which has gained interest since the discovery of oil reserves in the Albertine Graben. The region has been poised for production, and the government’s initiatives, including the redevelopment of historical mines such as Kilembe, signal a broader ambition to enhance the nation’s energy and mineral resources. The current economic landscape, characterized by a combination of natural resource development and infrastructure investment, underpins Uganda’s commitment to becoming a significant player in the East African oil market.
The announcement of Uganda’s third oil exploration licensing round represents a pivotal step towards unlocking the country’s substantial mineral wealth. With extensive oil reserves and plans to redevelop historical mining sites, Uganda aims to rejuvenate its economy through enhanced energy production and mineral extraction, thereby positioning itself strategically within the East African oil and gas sector.
Original Source: pumps-africa.com
