Uganda’s government has announced a third petroleum exploration licensing round set to launch in the 2025/2026 fiscal year, aiming to expand oil and gas exploration in undisclosed new areas. The nation expects to begin oil production this year, alongside the redevelopment of the Kilembe copper mine, as it seeks to rejuvenate its mining sector and capitalize on its substantial oil reserves.
The government of Uganda is set to commence its third petroleum exploration licensing round, as announced by Energy and Mineral Development Minister Ruth Nankabirwa. Scheduled to take place in the 2025/2026 fiscal year (July to June), this initiative aims to expand oil and gas exploration into new areas. However, the specific regions for this round, whether in the Albertine Graben or the northern and northeastern basins, have yet to be specified.
Uganda, which has been exploring crude oil in the Albertine Graben for nearly 20 years, anticipates beginning production within this year. Progress is also evident in the mining sector, as the government has selected a developer for the Kilembe copper mine located at the border with the Democratic Republic of Congo, with final negotiations nearing completion. This copper mine, estimated to hold 4 million tonnes of ore, has been inactive since the 1970s due to economic and political challenges.
The ongoing efforts highlight Uganda’s commitment to revitalizing its mining and oil and gas sectors. Currently, the nation boasts 6.5 billion barrels of oil reserves, of which approximately 1.4 billion are deemed economically recoverable. Predominantly located in western Uganda, the reserves are concentrated along the border with the Democratic Republic of the Congo, particularly in the Kingfisher and Tilenga basins, which are active zones for oil development.
Development drilling for Uganda’s East Africa Crude Oil Project has been actively progressing since mid-2023. As of August 2024, the Tilenga project completed 63 of the 426 planned wells, while the Kingfisher project has successfully drilled nine production wells.
Uganda’s petroleum exploration efforts began nearly two decades ago with the discovery of crude oil in the Albertine Graben, a region known for its rich reserves. The government is now focused on increasing exploration activities, which it believes will further develop its oil and gas industry amid ongoing global energy demands. Additionally, the redevelopment of the Kilembe copper mine is part of broader efforts to revitalize the mining sector, indicating a parallel push for diversification in Uganda’s economic landscape.
In conclusion, Uganda is strategically moving forward with its plans to enhance its oil and gas exploration capabilities through the upcoming licensing round. This initiative, along with the redevelopment of the Kilembe copper mine, reflects the government’s commitment to bolstering its energy and mining sectors. With substantial oil reserves and ongoing projects, Uganda is positioning itself as a key player in the East African energy landscape.
Original Source: pumps-africa.com
