Uganda develops its Oil Sector

Uganda is preparing to launch its 3rd round of oil block licensing in 2023. The country intends to develop its economy thanks to its oil.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Uganda is seeking to develop its economy. Thus, the country relies on its oil sector. Next year, it will organize its 3rd round of licensing for oil blocks.

Uganda wants to exploit its oil

Uganda discovered crude oil reserves in the Albertine Rift Basin in 2006. It is located near the border with the DRC. The basin has already undergone 2 licensing rounds.

However, a very large part of the basin is unexplored. According to government geologists, the country’s confirmed reserves reach 6.5 billion barrels of oil. 2.2 billion barrels are recoverable.

Ruth Nankabirwa Ssentamu, Minister of Energy and Mineral Development, says:

“As part of strategies to develop oil and gas resources in a sustainable manner, the country is announcing the third licensing round in 2023.”

Tensions with the EU

In February, TotalEnergies and CNOOC signed an IDF with Uganda and Tanzania. Together, they were to launch investments in excess of $10 billion to produce and export crude from Uganda.

Of this amount, $3.5 billion will be allocated to the construction of an oil pipeline. It will bring crude oil from Uganda to a port in Tanzania. Remember that Uganda is a landlocked country. Thus, in order to export its oil, the country must transport its oil to a port in a neighboring country.

However, earlier this month, the European Parliament passed a resolution urging TotalEnergies to delay the development of the pipeline by one year. Yoweri Museveni, President of Uganda, strongly criticized the resolution.

He states:

“[La décision du Parlement européen est] a bad battlefield for them. We don’t stand for arrogance. The plan will therefore be implemented according to schedule. Are you lecturing me on what to do in Uganda? Some of these people are insufferable.”

According to the EU, the construction of this pipeline would have many negative impacts. It would result in the displacement of 100,000 people. In addition, this route would compromise water resources while endangering some of Tanzania’s marine protected areas.

For its part, TotalEnergies is under pressure from the Ugandan president. He said he was ready to find another partner if the French company complied with the EU resolution.

The US Treasury Department has imposed sanctions on more than 50 entities linked to Iranian oil exports, targeting Chinese refineries and vessels registered in Asia and Africa.
Khartoum et Juba annoncent un mécanisme commun pour protéger les oléoducs transfrontaliers, sans clarifier le rôle des forces armées non étatiques qui contrôlent une partie des installations.
The Namibian government signed an agreement with McDermott to strengthen local skills in offshore engineering and operations, aiming to increase oil sector local content to 15% by 2030.
Nigeria deploys a 2.2 million-barrel floating storage unit funded by public investment, strengthening sovereignty over oil exports and reducing losses from theft and infrastructure failures.
Despite open statements of dialogue, the federal government maintains an ambiguous regulatory framework that hinders interprovincial oil projects, leaving the industry in doubt.
Canada’s Sintana Energy acquires Challenger Energy in a $61mn all-share deal, targeting offshore exploration in Namibia and Uruguay. The move highlights growing consolidation among independent oil exploration firms.
The 120,000-barrel-per-day catalytic cracking unit at the Beaumont site resumed operations after an unexpected shutdown caused by a technical incident earlier in the week.
An agreement was reached between Khartoum and Juba to protect key oil installations, as ongoing armed conflict continues to threaten crude flows vital to both economies.
Alnaft has signed two study agreements with Omani firm Petrogas E&P on the Touggourt and Berkine basins, aiming to update hydrocarbon potential in key oil-producing areas.
Import quotas exhaustion and falling demand push Chinese independent refineries to sharply reduce Iranian crude volumes, affecting supply levels and putting downward pressure on prices.
Serbian oil company NIS, partially owned by Gazprom, faces newly enforced US sanctions after a nine-month reprieve, testing the country's fuel supply chain.
US-based Chevron appoints Kevin McLachlan, a veteran of TotalEnergies, as its global head of exploration, in a strategic move targeting Nigeria, Angola and Namibia.
Lycos Energy finalises the sale of its Alberta assets for $60mn, planning an immediate $47.9mn cash distribution to shareholders and the launch of a share buyback programme.
Russian oil output moved closer to its OPEC+ allocation in September, with a steady rise confirmed by Deputy Prime Minister Alexander Novak.
Fuel shortages now affect Bamako, struck in turn by a jihadist blockade targeting petroleum flows from Ivorian and Senegalese ports, severely disrupting national logistics.
McDermott has signed a memorandum of understanding with PETROFUND to launch technical training programmes aimed at strengthening local skills in Namibia’s oil and gas sector.
The example of OML 17 highlights the success of an African-led oil production model based on local accountability, strengthening Nigeria’s position in public energy investment.
ExxonMobil has signed a memorandum of understanding with the Iraqi government to develop the Majnoon oil field, marking its return to the country after a two-year absence.
Crude prices rose following the decision by the Organization of the Petroleum Exporting Countries and its allies to increase production only marginally in November, despite ongoing signs of oversupply.
Cenovus Energy modifies terms of its acquisition of MEG Energy by increasing the offer value and adjusting the cash-share split, while reporting record third-quarter results.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.