Ministry of Energy draws new roadmap to attract oil investors

Companies to invest in oil fields start touring ahead of business set to start next year

Uganda’s Ministry of Energy has drawn another roadmap aimed at attracting investors for the second competitive oil bidding for the five oil blocks in the Albertine region.

Located along Uganda’s western border with Democratic Republic of Congo, the five oil blocks are located in parts of West Nile and have been up for grabs to potential oil investors since May 2019.

The initial plan indicated that the licencing rounds was meant to have been completed by the end of 2020, however, thanks to covid-19, the second licencing had to be extended seeing as the pandemic had affected global oil exploration.

Subsequently, the Director Petroleum Exploration Development and Production Department, Hanny Makings informed that the granting of exploration licences is anticipated to occur at the end of this year.

“As the government of Uganda, we shall be happy to announce two or three companies on the second bidding round. We go to the next,” informed the Director Petroleum Exploration Development and Production Department.

Back in January, the Energy ministry shortlisted four companies which includes France’s Total SE, Australia’s DGR Global Ltd, Nigeria’s PetrolAfrik Energy Resources and Uganda’s Uganda National Oil Company.

During the first bidding, it was discovered that France’s Total SE shall participate in a joint venture with China’s China National Offshore Oil Corporation (CNOOC) Group in the entire bidding process.

These companies have therefore been granted until June 30th 2021 to finish the Request For Proposal (RFP) stage. There after, the evaluation of the RFPs shall take close to two months probably June to August.

Mr. Hanny Malinga passed a stun warning to potential investors that the June 30th date shall not be extended as he said;

“Let it be on record that we are going to be very hard on this. So that we know that this process that been completed. Rather than continue postponing it. Because at the end of the day people might forget whether we have bidding round or not.”

ALSO, READ
Covid 19 Second Wave To Have Lasting Negative Effects On The Tourism Sector

Gulu district officials harvest big from illegal charcoal dealers

National Drug Authority Talks About Covidex Medicine Making Rounds In The Public

East African Community contemplates joint recovery ventures from effects of Covid-19

Whereas the negotiations of the Production Sharing Agreement with successful bidders basing on the roadmap is meant to be completed by the end of December 2021 although there’s fear that the increase in Covid-19 cases and deaths shall further delay the process, as voices by the Manager of the second bidding, Frank Mugisha.

He went ahead to inform that all the bidders have been granted the necessary data meant to facilitate the bidding since they may not have any physical interactions although some bidders would rather visit the blocks physically.

Written by 

Related posts

Leave a Comment