According to Reuters article published on May 12, 2023, Uganda signed a production-sharing agreement (PSA) with a unit of Australian firm DGR Global (DGR.AX) on Friday for exploration of oil in its west.
DGR Energy Turaco Uganda Limited will explore in the Turaco block, a swathe of 637 sq km (246 sq miles) in the Albertine Rift basin that straddles the African nation's border with the Democratic Republic of Congo.
Turaco was one of five blocks put up for auction in Uganda's second licensing round launched in 2019.
"This licence marks a significant milestone for the competitive second licensing round," Energy Minister Ruth Nankabirwa said in the capital, Kampala.
Implementation of the round had been delayed by the COVID-19 pandemic as travel curbs affected the bidding and negotiation stages, she added.
The deal gives DGR Energy four years of exploration.
Uganda discovered commercial hydrocarbon deposits in 2006 and reserves are estimated at 6.5 billion barrels.
All the existing development fields are owned by France's TotalEnergies (TTEF.PA), China's CNOOC (0883.HK) and Uganda National Oil Company (UNOC).
Commercial production is expected to commence in early 2025.
Armour Energy Uganda Ltd, another unit of DGR Global, got a two-year extension of its licence for the Kanywataba exploration area on Friday. It has been exploring there since 2017.
Tags: Africa,AlwaysFree,Crude Oil,English
Published on May 16, 2023 11:39 AM (GMT+8)Last Updated on May 16, 2023 11:39 AM (GMT+8)
