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MNSTRYOF ENERGYAND

MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
1
MINISTRY OF ENERGY AND MINERAL DEVELOPMENT
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
Presented By:

Petroleum Exploration and Production Department

at
Training Workshop for Radio Journalists
by
Africa Centre for Media Excellence
22
ND
APRIL, 2013


MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
PRESENTATION OUTLINE
1. INTRODUCTION
Extractive Industry
Petroleum Value Chain
Sedimentary Basin Concept
History
2. STATUS OF THE OIL AND GAS SECTOR
3. LEGAL AND REGULATORY FRAMEWORK
4. NATIONAL OIL AND GAS POLICY FOR UGANDA
Basis And Process Of Formulation
Achievements in Policy Implementation (2008 To Date)
5. OPPORTUNITIES AND BENEFITS
6. EXPECTATIONS FROM THE MEDIA
7. CONCLUDING REMARKS

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MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
1.1 EXTRACTIVE INDUSTRY
Petroleum
Latin Petra rock and Oleum oil-natural
Fluid composed of a mixture of hydrocarbon molecules.
Used to refer to both crude oil and natural gas
A mixture of oil and/or gas crude oils, natural gas.
Could also be solid asphalt
Formed from the remains of dead plants and animals buried millions of years ago.
Certain geological conditions must have existed within the oil-rich rocks.

Hydrocarbon
Hydrocarbons are organic chemical compounds that consist entirely of carbon and hydrogen, and
range from simple molecules such as methane, to polymers such as polystyrene, which consists of
thousands of atoms. Fossil fuels, such as oil and natural gas, are naturally occurring mixtures of
hydrocarbons

Mineral
A mineral is a naturally occurring inorganic solid, with a definite chemical composition, and an
ordered atomic arrangement. Minerals are naturally occurring, inorganic (are not made up from
plants or animals) and are solid, among other characteristics.


INTRODUCTION
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
CHARACTERISTICS
Oil, gas, and solid mineral resourcesthe non-renewable extractive industries
are major contributors to many developing countries economies.
Proper stewardship of extractive industries and the revenues they generate has tremendous potential to
lift people out of poverty and contribute to sustainable development ;
infrastructure development
social service delivery
These industries create jobs directly and indirectly, transfer technologies and knowledge
Extractive industry revenue tends to be uncertain, volatile, and exhaustibleall characteristics that pose
enormous challenges to policymakers.
Many resource-rich, developing countries have fallen prey to the resource curse, under which poor
policy choices and corruption have exacerbated cycles of poverty and conflict.

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1.1 EXTRACTIVE INDUSTRY
Introduction (2)
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MINISTRYOF ENERGYAND
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P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t


8. Market Power
Host governments may not be able to exercise
appreciable control over the flow of some
resources to the market. Largest oil producers
account for 60% of world production.
9. Exhaustibility
Finiteness of potential production
10. Environment
Significant environment challenges both from the
inescapable footprint of extraction activities and
accidental oil spillage plus other damages
Significant gas flaring and venting
11. Asymmetrical Information
Policy makers will generally have less
information of the geology and commercial
circumstances at all stages of the value chain
INTERFACE BETWEEN MINERALS AND PETROLEUM


1. Both are extractive industries
2. High sunk costs, Long production periods
3. Both are found under the surface but at different
depths
4. For case of Uganda, as of now both sectors are
under one Ministry
5. Subject to Uncertainty at all stages
Revenues are volatile and exhaustibleall
characteristics that pose enormous challenges to
policymakers.
Geology posses its own uncertainty
6. Substantive resource rent
Royalties
Corporate tax
Import tax
VAT
others
5
Similarities
Introduction (3)
1.1 Extractive Industry
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Introduction (4)
1.1 Extractive Industry
Petroleum
1. Found deep in the subsurface
2. complex technology is needed for
extraction
3. Not a mass employer
4. High risk high reward industry
5. Petroleum Exploration and Production Act
1985
6. High initial investment capital
7. Revenue sharing mechanism is different
(landlord does not get royalties) only
regional and central government get
royalties
Minerals
1. Found near the surface
2. Less complex technology
3. Can be a mass employer since anyone
is free to extract minerals in some
gazetted areas
4. Minimum risk involved
5. Mining Act, 2003 and the Mining
Regulations of 2004 as well as the
Minerals (Prohibition of Exportation) Act
Cap 147.
6. Does not require high initial investment
capital
7. Land lords receive royalties

6
Differences
INTERFACE BETWEEN MINERALS AND PETROLEUM (2)
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7
LICENSING
EXPLORATION
APPRAISAL
DEVELOPMENT
PRODUCTION
DECOMISSIONING
U P S T R E AM MI D S T R E AM D OWN S T R E AM
TRANSPORTATION
REFINING
GAS PROCESSING
DISTRIBUTION
MARKETING
SALES
Exploration & Appraisal: Search for petroleum
accumulations , Includes Establishing presence,
Content ease of flow and Extent of distribution
Development: Preparing reservoir for
Production, Preparing facilities for Collection and
Processing
Production: Removal of petroleum from
subsurface reservoirs to the surface, Preparing
petroleum for Transportation and Refining
Converting oil and gas into
marketable products and
chemicals
Marketing and distribution
for Customer satisfaction
and Profit earning
Efficient movement of oil
and gas products in bulk
mainly by pipeline, road
tankers, ocean tankers and
rail wagons
Introduction (5)
1.2 The Petroleum Value Chain
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1.3 SEDIMENTARY BASIN CONCEPT
Overburden Rock
Seal Rock
Reservoir Rock
Source Rock
Underburden Rock
Basement Rock
Top Oil Window
Top Gas Window
Geographic Extent of Petroleum System
Essential
Elements
of
Petroleum
System
O O
S
e
d
i
m
e
n
t
a
r
y

B
a
s
i
n

F
i
l
l

O
Stratigraphic
Extent of
Petroleum
System
Pod of Active
Source Rock
Extent of Prospect/Field
Extent of Play
Overburden Rock
Seal Rock
Reservoir Rock
Source Rock
Underburden Rock
Basement Rock
Top Oil Window
Top Gas Window
Geographic Extent of Petroleum System
Essential
Elements
of
Petroleum
System
(modified from Magoon and Dow, 1994) (modified from Magoon and Dow, 1994)
O O
S
e
d
i
m
e
n
t
a
r
y

B
a
s
i
n

F
i
l
l

O
Stratigraphic
Extent of
Petroleum
System
Pod of Active
Source Rock
Extent of Prospect/Field
Extent of Play
Sedimentary Basin
A depression
created as a
consequence of
subsidence, that
fills with sediment

Thick layers of
sedimentary rocks
get laid down over
a long period of
time
Introduction (6)
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9
Source rock; A rock rich in organic matter which, if heated
sufficiently, will generate oil or gas.
Reservoir rock; A rock having sufficient porosity and
permeability to store and transmit fluids.
Porosity; The percentage of pore volume or void space, or that
volume within rocks that can contain fluids. The fluids may be
water, air, oil or gas.
Permeability; The ability of a rock to transmit fluids.
Migration; Hydrocarbon migration and movement is possible if
the reservoir rock has good porosity and permeability
Cap/Seal; A relatively impermeable rock (commonly shale,
anhydrite or salt) that forms a barrier or cap above and around
reservoir rock such that fluids cannot migrate beyond the
reservoir.
Graben; A graben is a depressed block of land bordered by
parallel faults. Graben is German word for ditch.

Introduction (7)
Presentation on how a Graben is formed
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Areas with Potential for Petroleum Exploration in Uganda
Six Sedimentary Basins in Uganda


1. Albertine Graben
2. Hoima Basin
3. Kadam-Moroto Basin
4. Lake Kyoga Basin
5. Lake Wamala Basin

6. Lake Victoria Basin
The Albertine Graben is the
most prospective
Lake Victoria
Lake Kyoga
Lake
Edward
Kadam-Moroto
Basin
L. Wamala
Basin
UGANDA
KENYA
SUDAN
TANZANIA
DRC
RWANDA
Hoima
Basin
Basins
whose
potential is
under
investigation
Not Prospective
Introduction (8)
10
Source : PEPD
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11
Sedimentary Basin in Uganda (Source: PEPD)
Introduction (9)
The Albertine Graben
Lake Malawi
Lake
Tanganyika
Lake Albert
Eastern Arm
Tanzanian
Craton
The Graben forms the northern
most part of the Western arm of
the EARS

Runs along Ugandas western
border with DRC


Tertiary basin 500 km long,
averaging 45 km wide and
23,000 sq km in Uganda.

1300 km from the coast




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P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Oil seepages in the Albertine Graben documented in the 1920s.
Early exploration work between 1930 1960 was not successful.
No petroleum exploration activity between 1960 1980s due to
political instability and colonial policy.
Systematic and modern exploration effort commenced in the
1980s.
Enactment of the Petroleum Exploration and Production Act, 1985.
Commencement of specialized training in petroleum Geosciences
by Ugandans in 1986
Formation of PEPD in 1991.
Licensing of EA 3 (Semliki Basin), to Heritage in 1997.
First oil discovery in 2006 by Hardman Resources /Energy Africa
(now Tullow Oil).
Licensing halted after first discovery.

12
Stratigraphic wells and early oil seep reporting (Source:
PEPD)
LAKE VI CTORIA
Lake
Edward
Lake
George
L
a
k
e

A
l
b
e
r
t
R
i ver S
em
li ki
Ri ver Katonga
Ri ver Kafu
Lake
Wamala
UGANDA
TANZANIA
RWANDA
SUDAN
D
.

R

C
O
N
G
O

V
i c
to
ri a
N
i l e

A
l
b
e
r
t

N
il
e

0 50 km
32
0
E 31
0
E 30
0
E
3
0
N
2
0
N
1
0
N
0
0

1
0
S
LEGEND
Rift Sediments
International Boundary
Major Roads
Faults
Rivers
HOIMA
MASINDI
FORT PORTAL
MAHAGI
N
Oil Seep
Statigraphic Wells
Town
2
0
N
1
0
N
2
0
N
1
0
N
31
0
E
31
0
E
13 Shallow
wells (1956)
9 Shallow
wells (1956)
20 Shallow
wells (1956)
HISTORY OF UGANDAS PETROLEUM
SECTOR
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P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
STATUS OF THE OIL AND GAS SECTOR
13
EXPLORATI ON
AND APPRAI SAL
DEVELOPMENT
AND
PRODUCTI ON
I NFRASTRUCTUR
E
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P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
14
The Albertine Graben is subdivided into
17 Licence Areas
Four (4) Active Production Sharing
Agreements (PSAs)
3 License Operators (Tullow, Total,
CNOOC)
Next round of licensing to be undertaken
through competitive bidding
Licensees in the country changing from
small to major oil companies.
ACREAGE/LICENCES
Status of the Oil and Gas Sector (2)
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Status of the Oil and Gas Sector (3)
15
DATA ACQUIRED
Large amounts of geological, geophysical and
engineering data acquired by the Ministry mainly to
attract investment
Over 10,000 km
2
of Uganda has been geologically
mapped for petroleum exploration
7,500 line km of gravity and magnetic data
9,578 line km of aeromagnetic data
GRAVITY, MAGNETIC, SEISMIC AND GEOLOGICAL MAPPING
50 0 50Km
(Kilometers)
Arc 1960 / UTM zone 36N
-217.9 -176.8 -158.4 -148.3 -142.4 -137.6 -132.4 -125.4 -119.8 -116.5 -111.3 -92.7
Gravity anomaly
(mGals)
LEGEND
International boundary
Roads
Lakes
Exploration Areas
-
1

0
0
'
-
0

3
0
'
0

0
0
'
0

3
0
'
1

0
0
'
1

3
0
'
2

0
0
'
2

3
0
'
3

0
0
'
3

3
0
'
-
1

0
0
'
-
0

3
0
'
0

0
0
'
0

3
0
'
1

0
0
'
1

3
0
'
2

0
0
'
2

3
0
'
3

0
0
'
3

3
0
'
2930' 3000' 3030' 3100' 3130' 3200'
2930' 3000' 3030' 3100' 3130' 3200'
6 1 2 -
8
0
2
-
8
0
2 -
0
0
2
-
2
9
1
-
4
8
1
-
4
8
1
-
-
1
7
6
6
7
1
-
6
7
1
-
- 1
6
8
8
6
1
-
8
6
1
-
-
1
6
0
- 1
6
0
0
6
1 -
0 6
1
-
-
1
5
2
-
1
5
2
- 1 5 2
-
1
5 2
2
5
1
-
2 5 1 -
-
1
4
4
4
4
1 -
4
4
1
-
4 4 1 -
-
1
4
4
4
4
1
-
4
4
1
-
-
1
3
6
6
3
1
-
6
3
1
-
-
1
3
6
-
1
3
6
6 3 1 -
6
3
1 -
6
3
1
-
-
1
3
6
-
1
2
8
- 1
2
8 -
1
2
8
-
1
2
8
8
2
1
-
-
1
2
8
8
2
1
-
8 2 1 -
-
1
2 0
-
1
2
0
0 2 1 -
0
2
1 -
0
2
1
-
0
2
1
-
0 2 1 -
-
1
1
2
-
1
1
2
- 1
1
2
2
1
1
-
2 1 1 -
- 1
0
4
- 1 0 4
4
0
1
-
-
1
0
4
4 0 1 -
4 0 1 -
-
9
6
6
9
-
7,194 line km of 2-D seismic data
1,608 km
2
of 3-D seismic data, on land and Lake Albert
The data acquired have identified several hydrocarbon
Prospects and Leads in the Albertine Graben
Some of the Prospects have been followed up by
drilling
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16
DATA ACQUIRED
WELLS DRILLED; 90 Exploration and Appraisal
Wells; 79 successful (87% success rate)
Drilling success trend (Source : PEPD)
JOBI DISCOVERY
JOBI-1
JOBI-2
JOBI-2A
JOBI-3
RII DISCOVERY
RII-1
NGIRI DISCOVERY
NGIRI-1
NGIRI-2
NGIRI-3
MPYO DISCOVERY
MPYO-1
MPYO-3
GUNYA DISCOVERY
GUNYA-1
NGEGE DISCOVERY
NGEGE-1
NGEGE-2 & 2A
NGEGE-3
NGEGE-4
NGEGE-5
NGEGE-6
NGARA DISCOVERY
NGARA-1
KIGOGOLE DISCOVERY
KIGOGOLE-1
KIGOGOLE-2
KIGOGOLE-3
KIGOGOLE-4
KIGOGOLE-5
KIGOGOLE-6&6A
TAITAI DISCOVERY
TAITAI-1
TAITAI-1A
KASAMENE &WAHRINDHI
DISCOVERIES
WAHRINDI-1
KASAMENE-1
KASAMENE-2
KASAMENE-3&3A
NSOGA DISCOVERY
NSOGA-1
NSOGA-2&2A
NSOGA-5
KARUKA DISCOVERY
KARUKA-1
KARUKA-2
NGASSA DISCOVERY
NGASSA-1
NGASSA-2
WARAGA DISCOVERY
WARAGA-1
MPUTA DISCOVERY
MPUTA-1
MPUTA-2
MPUTA-3
MPUTA-4
MPUTA5
NZIZI DISCOVERY
NZIZI-1
NZIZI-2
NZIZI-3
KINGFISHER DISCOVERY
KINGFISHER-1&1A
KINGFISHER-2
KINGFISHER-3&3A
TURACO DISCOVERY
TURACO-1
TURACO-2
TURACO-3
NGAJI-1
MVULE-1
ITI-1
AVIVI-1
AWAKA-1
KANWYATABA-1
Status of the Oil and Gas Sector (4)
1 1 1 1
5 5
13
9
10
8
22
3
3
2
0
1
2
3
4
5
6
7
8
0
5
10
15
20
25
30
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
P
r
o
j
e

N
u
m
b
e
r

o
f

W
e
l
l
s

YEAR
DRILLING SUCCESS TREND IN THE ALBERTINE
GRABEN
Discovery
88%
112%
DRILLING SUCCESS RATE
Success
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17
DISCOVERIES AND RESOURCES
21 oil and/or gas discoveries
made to date.
Over 3.5 billion barrels of
STOIIP established.
Estimated 1.2 billion barrels
of recoverable oil equivalent.
Appraisal of the discoveries is
ongoing.
Less than 40% of the
Albertine Graben has been
evaluated.
Discoveries in the Albertine Graben (Modified from Rubondo
Status of the Oil and Gas Sector (5)
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MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
ONGOING WORK; APPRAISAL
18
Exploration Area 1 and 1 A (Operated by TOTAL)
Seven Discoveries; Jobi, Rii, Mpyo, Ngiri, Gunya, Lyec and
Jobi-East are under appraisal.
3-D Seismic Survey is ongoing
Exploration Area 2 (Operated by TULLOW)
Seven Discoveries; Kasamene, Waraga, Ngege, Nsoga,
Kigogole, Wahrindi and Ngara are under appraisal.
Kingfisher Discovery Area (Operated by CNOOC) - Hoima
Kingfisher Oil field due for issuance of a Production Licence

DEVELOPMENT AND PRODUCTION PLANNING
Field Development Plans and Petroleum Reservoir reports for
three discoveries Mputa-Nzizi and Kingfisher are under review.



Status of the Oil and Gas Sector (6)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
INVESTMENTS IN THE SECTOR
19
INVESTMENTS MADE
1
st
Major Discovery
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MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
INVESTMENTS IN THE SECTOR (1)
20
INVESTMENTS MADE
Industry is capital intensive and high risk
So far, risk capital invested in seismic surveys, exploratory and appraisal drilling
to a total of US$1.7 billion
Sharp increase in investment after first discovery
This is significant investment and will rise to many fold with further investments
expected in field development, production of the crude oil, processing and
transportation facilities
The costs incurred in the sector in the country so far are classified as Finding
Costs
Means the costs of finding commercial reserves of oil in USD per barrel
On the global scale, the finding costs range between $5 - $25 per barrel



MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Ugandas Petroleum Exploration and Production is Governed by:

The Petroleum (Exploration, Development and Production) Act 2013

The Petroleum Regulations (1993)

Model Production Sharing Agreements (PSAs)

Environment, Wildlife, Water , Income Tax, Land, Statutes and Guidelines

The National Oil and Gas Policy for Uganda, 2008

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LEGAL AND REGULATORY FRAMEWORK
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MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
The National Oil and Gas Policy (NOGP) is the
key document providing guidance to the Oil and
gas sector in Uganda.

It was developed to comprehensively address
issues of exploration, development, production
and utilisation of the countrys oil resources
following the discovery of commercial oil
reserves in 2006.

NOGP was approved by cabinet in January 2008
after a thorough consultative process.
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THE NATIONAL OIL AND GAS POLICY FOR
UGANDA
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MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Key Policy objectives for the oil and gas sector before the National Oil and Gas
Policy for Uganda were covered in the Energy Policy of 2002 and these were;

1.Capacity building and institutional development,

2. Investment promotion through acquisition of field geological, geophysical and
geochemical data and attraction of oil companies to invest; and

3. Monitoring compliance of agreed work programs, budgets and environment
protection.

The discovery and confirmation of commercial reserves of petroleum in the country
brought about new issues that necessitated putting in place a NATIONAL OIL AND
GAS POLICY for the country.
23
National Oil and Gas Policy (2)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
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MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t

Policy Goal:
To use the countrys oil and gas resources to contribute to early
achievement of poverty eradication and create lasting value to society.

Policy has ten objectives, each with strategies and actions.


Policy available in print and website;www.petroleum.go.ug

An abridged and translated version of the policy is being developed.


24
National Oil and Gas Policy (3)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
1. Presentation of new petroleum legislation in parliament February 2012 (Petroleum (Exploration,
Development and Production) Bill 2012 and Petroleum, Refining, Conversion, Transmission and
Mid stream Storage) Bill, 2012 that were passed during December 2012 and February 2013. The
Petroleum (Exploration, Development and Production) Act 2013 was gazetted and became
effective on 5
th
April 2013.
2. Structures for new Institutions (Petroleum Authority and National Oil Company) developed.
3. Oil and Gas Revenue Management Policy developed and Public Finance Bill 2012 presented to
parliament and provides for petroleum revenue management.
4. Over 10,000 km
2
of area with high petroleum potential have been relinquished and will be
available for relicensing along with the unlicensed areas through competitive bidding rounds.
5. Resources in 2008 were 300 million barrels of oil in place. Today the resources are over 3.5
billion barrels of oil in place.
6. A comprehensive feasibility study for in country refining has been concluded and planning for
refinery development is on-going.

ACHIEVEMENTS IN POLICY
IMPLEMENTATION
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
7. Petroleum transportation and storage study for crude and products commenced.
8. Close monitoring of environment and biodiversity being undertaken; EIAs
undertaken; Environment Sensitivity Atlas developed; Strategic Environment
Assessment is on-going; Environment Monitoring Plan in Place, Guidelines for
Waste Management and Operations in protected areas are in place; Multi-
Institutional Monitoring.
9. A study on the opportunities and challenges for Ugandans participation in the oil
and gas sector has been finalised and a strategy for its implementation is being
developed.
10. Support for the introduction of training courses in Ugandan Universities and
technical institutions focusing on petroleum industry; MUK and UPIK commenced
petroleum courses.
11. Communication Strategy developed and under implementation; dialogue and
consultations with stakeholders are on-going.
Achievements In Policy
Implementation (2)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
OPPORTUNITIES AND BENEFITS
Corporate Social Responsibility Initiatives.
Support to Health, Education and Social
Enterprise
Infrastructure Development.
Improved road networks and access to
previously remote areas
Improved communication facilities



27 Ministry of Energy and Mineral Development
Kaiso Primary School, Hoima
Construction of Hoima-Buseruka-
KaisoTonya road
Buliisa Health Centre IV
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
28 Ministry of Energy and Mineral Development
Revenue Generation to support service provision
Increased foreign investment and economic rating for the country
Use of Hydrocarbons for power generation envisaged to alleviate power shortages and
contribute to the energy mix of the country
Technology Transfer and the opportunity to develop a highly skilled man power in oil and gas
related disciplines
Stimulation of other industries such as the manufacturing sector, petro-chemical industry
which will have spill-over benefits.
Security of supply: The discovery of oil and gas in Uganda is a key contributor to energy
security.
Industrialization: The petroleum industry will lead to a rapid industrialization of the country.
Petroleum is the raw material for many chemical products, including pharmaceuticals,
solvents, fertilizers, pesticides, and plastics.
Investment opportunities
Opportunities and Benefits (2)
MNSTRYOF ENERGYAND
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THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Service Industry
Drilling Products and Services
Reservoir Engineering studies
Transport
Clearing and forwarding
Environment consultancy
Construction/ Civil works
Fabrication and Facility Maintenance
(plumbing, electrical, mechanical)
Man power management services
recruitment
Heavy equipment and machinery
(cranes, folklifts)
Support services (Catering, Camps etc)
Banking & Insurance
Legal services
Health services
Housing
Vocational training in relevant skills
Supply of Agricultural products:
Selected Examples of Investment Opportunities
Exploration and Development
Participation in licensing rounds
Geophysical surveys, particularly seismic
Drilling , FEED and EPC
Equipment supply and/ or leasing (boats, barges, house
boats, etc)
Supply of casings for boreholes
Partnerships
With licensed Companies
With Government to:
Develop required infrastructure
create training institutions specialising in petroleum
Production
Crude oil transportation & storage
Refining and other infrastructure developments like
pipelines
Power generation by Independent Power Producers
Future petrochemical industry
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Appreciate the progress and achievements that have been made in the sector.

Oil and Gas Industry Characteristics (High Risk Industry, High Reward, Capital intensive, International
and has potential to disrupt other sectors and can also be easily disrupted) require responsible media to
avoid disruption of the sector and contribute to managing expectations.

Be proactive in reporting about the oil and gas sector and ensure objective coverage of the sector.

Seek the correct information from the right sources to avoid misrepresentations based on selfish
interests; Get the right mix between political debates and expert information; there is tendency to rely
more on politicians than experts for media stories.

Network with key actors in the sector and obtain information with them to the extent that does not offend
your professionalism in order to deploy reporters optimally and for key tasks. Key actors include MEMD,
Finance, Parliament, Oil companies, NEMA, UWA, URA etc.

Find space and airtime in your channels for the sector, even when there are no "fireworks" around the
sector to give people information. Oil stories make interesting reading/listening.

Work closely with the MEMD and PEPD Communications Office to ensure information flow.



30
EXPECTATIONS FROM THE MEDIA
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MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
CONCLUDING REMARKS
31
The intensive promotional and exploration efforts to establish Ugandas petroleum potential were
successful as commercially exploitable reserves of oil and gas were confirmed in the country in 2006.
Efforts are now being made to commercialize the discovered resources, initially through power
generation and subsequently through refining of the crude oil.
Investment in the sector is expected to increase especially as preparation of the infrastructure required
for production is put in place.
There is need to ensure that the industry is regulated very well especially since errors can be very costly
in terms of money, environment and lives.
The key challenges in the sector include the general publics anxiety and expectation and the need to
put in place an appropriate institutional and regulatory framework for the sector.
These and other challenges in the sector are well identified and described in the countrys oil and gas
policy and therefore implementation of this policy should go along way in addressing these challenges.
Ugandans must continue to position themselves to benefit from the opportunities in the sector.
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
Petroleum Exploration and Production Department
Ministry of Energy and Mineral Development
Email: pepdebb@petroleum.go.ug
Web: www.petroleum.go.ug

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