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:

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 expansion of the global oil and gas fishing market is accelerating on the back of offshore projects, with annual growth estimated at 5.7% according to The Insight Partners.
The Competition Bureau has required Schlumberger to divest major assets to finalise the acquisition of ChampionX, thereby reducing the risks of market concentration in Canada’s oilfield services sector. —
Saturn Oil & Gas Inc. confirms the acquisition of 1,608,182 common shares for a total amount of USD3.46mn, as part of its public buyback offer in Canada, resulting in a reduction of its free float.
OPEC slightly adjusts its production forecasts for 2025-2026 while projecting stable global demand growth, leaving OPEC+ significant room to increase supply without destabilizing global oil markets.
Talks between European Union member states stall on the adoption of the eighteenth sanctions package targeting Russian oil, due to ongoing disagreements over the proposed price ceiling.
Three new oil fields in Iraqi Kurdistan have been targeted by explosive drones, bringing the number of affected sites in this strategic region to five in one week, according to local authorities.
An explosion at 07:00 at an HKN Energy facility forced ShaMaran Petroleum to shut the Sarsang field while an inquiry determines damage and the impact on regional exports.
The Canadian producer issues USD 237 mn in senior notes at 6.875 % to repay bank debt, repurchase USD 73 mn of 2027 notes and push most of its maturity schedule to 2030.
BP revised upwards its production forecast for the second quarter of 2025, citing stronger-than-expected results from its US shale unit. However, lower oil prices and refinery maintenance shutdowns weighed on overall results.
Belgrade is engaged in complex negotiations with Washington to obtain a fifth extension of sanctions relief for the Serbian oil company NIS, which is majority-owned by Russian groups.
European Union ambassadors are close to reaching an agreement on a new sanctions package aimed at reducing the Russian oil price cap, with measures impacting several energy and financial sectors.
Backbone Infrastructure Nigeria Limited is investing $15bn to develop a 500,000-barrel-per-day oil refinery in Ondo State, a major project aimed at boosting Nigeria’s refining capacity.
The Central Energy Fund’s takeover of the Sapref refinery introduces major financial risks for South Africa, with the facility still offline and no clear restart strategy released so far.
PetroTal Corp. records production growth in the second quarter of 2025, improves its cash position and continues replacing key equipment at its main oil sites in Peru.
An explosion caused by a homemade explosive device in northeastern Colombia has forced Cenit, a subsidiary of Ecopetrol, to temporarily suspend operations on the strategic Caño Limón-Coveñas pipeline, crucial to the country's oil supply.
U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.
Petróleos de Venezuela S.A. (PDVSA) recorded $17.52bn in export sales in 2024, benefiting from increased volumes due to U.S. licences granted to foreign partners, according to an internal document seen by Reuters.
The detection of zinc in Mars crude extracted off the coast of Louisiana forced the US government to draw on its strategic reserves to support Gulf Coast refineries.
Commissioning of a 1.2-million-ton hydrocracking unit at the TANECO site confirms the industrial expansion of the complex and its ability to diversify refined fuel production.