Early results indicate 6.5 billion BOEs in proven reserves
Uganda is taking steps to expand its oil exploration efforts into two new regions, aiming to bolster its proven reserves of 6.5 billion barrels. The country's energy minister, Ruth Nankabirwa Ssentamu, recently shared this development during a press conference in Kampala.
New Exploration Areas: Moroto-Kadam and Kyoga Basins
The Ugandan Ministry of Energy and Mineral Development has initiated preliminary petroleum exploration studies in the Moroto-Kadam Basin, located in the northern part of the country, as well as the Kyoga Basin in the northeast. According to Minister Nankabirwa, early findings suggest the potential for commercial oil and gas reserves, particularly in the Moroto-Kadam Basin. This discovery could mark a significant milestone in Uganda’s ongoing efforts to enhance its energy resources.
Current State of the Albertine Graben Basin
Uganda's journey into the oil industry began nearly two decades ago with the discovery of commercial crude oil in the Albertine Graben basin, situated in the western part of the country near the border with the Democratic Republic of Congo. Despite the early discovery, commercial oil production has been delayed and is now expected to commence next year.
The Albertine Graben has proven to be Uganda's most promising hydrocarbon basin, with two major fields—Tilenga and Kingfisher—leading the way. These fields are primarily operated by TotalEnergies, which holds a 56.7% stake, while China’s CNOOC and the Uganda National Oil Company (UNOC) hold the remaining shares.
However, progress in the Albertine Graben has faced challenges, including disagreements over field development strategies, taxation issues, and the lack of necessary infrastructure and funding. To date, only 72 of the planned 457 wells have been drilled in the Tilenga and Kingfisher fields.
Future Prospects and Investments
Minister Nankabirwa also highlighted the ongoing efforts to secure funding for the East African Crude Oil Pipeline (EACOP). The Ugandan government is awaiting a decision from Chinese financial institutions, including the Export-Import Bank of China (EXIM) and China Export & Credit Insurance Corporation (Sinosure), on whether they will provide the necessary credit for this ambitious project. The EACOP is expected to play a crucial role in transporting Uganda’s crude oil to international markets.
As Uganda continues to explore new regions for oil and gas, the country is positioning itself to become a significant player in the East African energy market. The success of these explorations could lead to increased production capacity, new investment opportunities, and strengthened economic growth.
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