UNOC Receives Petroleum Exploration License from Ministry of Energy

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The Uganda National Oil Company (UNOC) has received Petroleum Exploration License (PELs) to undertake works on Kasuruban oil block, triggering exploration in one of the country’s largest blocks.

This follows the signing of a Production Sharing Agreement (PSA) for Kasuruban block between UNOC and the Minister of Energy, Ruth Nankabirwa.

According to Nankabirwa, the PELs awarded to UNOC are in accordance with section 58 of the Petroleum Act, 2023.

During the signing event, she congratulated UNOC for signing of the PSA for Petroleum Exploration, Development and Production between the Government and UNOC and grant of the Petroleum Exploration License for the Kasuruban Contract Area.

“This license marks a significant milestone for the competitive second licensing round which my predecessor announced during May 2019 in Mombasa, Kenya,” Nankabirwa said.

She thanked President Museveni for the guidance and support received during the licensing round and his foresightedness in enabling progress of the development in the sector leading to first oil production in 2025.

She also reiterated government’s commitment to the effective, efficient and sustainable development of the oil and gas sector in Uganda for the benefit of all Ugandans.

Clovice Irumba, Director Exploration under the Petroleum Authority of Uganda (PAU) said that the new venture will increase the experience of Ugandans, and UNOC in oil exploration, increase National Participation at the most strategic level, and potentially increase the country’s resource base now at 6.5 billion barrels of oil in place.

“We are eager and ready to work with UNOC to ensure successful implementation of sustainable exploration activities in Kasuruban block. This will contribute to unlocking Uganda’s oil and gas potential,” Irumba said.

A PSA manages a relationship between a licensee and the Government.

The Exploration License issued is valid for a period of two years and covers a total area of 1,285 sq km.

UNOC’s Proscovia Nabbanja stated that as part of the PSA, the payment of USD 155,700 was made  which includes payment of the signature bonus, ground rental and research and training fees.

In 2019, the energy Ministry announced the second licensing round with five blocks namely Avivi, Omuka, Turaco, Ngaji and Kasuruban.

The blocks are in the Albertine Graben and beyond.

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