Uganda Set to Launch Third Oil Exploration Licensing Round in 2025
Uganda will launch its third petroleum exploration licensing round in the 2025/2026 fiscal year, aiming to open new areas for oil and gas exploration. The government is also finalizing plans to redevelop the dormant Kilembe copper mine, which has significant ore deposits. Uganda possesses 6.5 billion barrels of oil reserves and is currently advancing its East Africa Crude Oil Project, marking a pivotal moment in its oil and gas industry.
The government of Uganda is poised to initiate its third petroleum exploration licensing round, as announced by Energy and Mineral Development Minister Ruth Nankabirwa. This round is scheduled to commence in the 2025/2026 fiscal year, spanning from July to June. It aims to introduce new areas for oil and gas exploration, although specific locations have yet to be revealed. This strategic move follows Uganda’s nearly two-decade history of crude oil discovery in the Albertine Graben, with production anticipated to begin this year.
In addition to the petroleum exploration efforts, the Ugandan government is advancing plans for the redevelopment of the Kilembe copper mine, which is situated near the border with the Democratic Republic of Congo. The final negotiations for this project are nearing completion, with an official announcement expected imminently. The Kilembe mine contains an estimated 4 million tonnes of ore, with notable grades of 1.98% copper and 0.17% cobalt, having remained inactive since the early 1970s due to fluctuating copper prices and political instability.
These initiatives reflect Uganda’s commitment to revitalizing its mining sector while concurrently broadening its oil and gas industry. Uganda boasts approximately 6.5 billion barrels of oil reserves, of which 1.4 billion are estimated to be economically recoverable. The majority of these reserves are located in western Uganda, notably along the border with the Democratic Republic of the Congo, with active development taking place in the Kingfisher and Tilenga basins within the Lake Albert Basin. Development drilling for Uganda’s East Africa Crude Oil Project commenced in mid-2023, with notable progress: the Tilenga project has completed 63 out of 426 planned wells, while the Kingfisher project has drilled nine production wells.
Uganda has been engaged in oil exploration since the discovery of crude oil in the Albertine Graben, which has sparked significant interest in the petroleum sector. The government has been working to exploit these resources effectively, and the upcoming licensing round reflects an ongoing effort to expand the country’s oil and gas exploration efforts. Additionally, the redevelopment of historical mining sites like the Kilembe copper mine is central to the government’s broader strategy to boost the mining sector and fortify the economy by tapping into both mineral and fossil fuel resources.
In conclusion, Uganda’s announcement of a third petroleum exploration licensing round represents a significant step in its ongoing efforts to maximize the potential of its substantial oil and gas reserves. The government’s initiatives to redevelop the Kilembe copper mine further emphasize a concerted strategy to invigorate both the mining and hydrocarbon industries. With development drilling now underway for the East Africa Crude Oil Project, Uganda appears poised for a significant evolution in its energy landscape, while also striving for economic growth through resource exploitation.
Original Source: pumps-africa.com
