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Sunday, September 17, 2017
The government of Uganda signed a PSA and issued a license for petroleum exploration, development, and production covering the Kanywataba Contract Area. The PSA was awarded to Armour Energy Ltd. (AEL) out of Australia.
Speaking during the signing ceremony,Uganda’s Minister of Energy and Mineral Development, Irene Muloni, said, “This is the first Production Sharing Agreement to be signed in line with Section 58 of the Petroleum Exploration, Development and Production Act 2013, the Legal regime under which I announced the First Competitive Licensing Round during February 2015.”
The Kanywataba Contract Area covers 344 sq km and the PSA is for four years, split into periods of two years each. The minimum work program includes the acquisition of seismic data and the drilling of atleast one well.
An advisory committee chaired by the Petroleum Authority of Uganda, and consisting of representatives from government and Armour will review and approve all annual exploration work programs, budgets and production forecasts.
In addition to Minister Muloni’s comments, the country’s Acting Permanent Secretary, Robert Kasande, added that one of the major achievements from this licensing round was the development of a state of the art data room which remains open to the industry to view and purchase data, and will also be used for future licensing rounds. “The Ministry was able to generate $2.4 million from the sale of data to bidders which was paid to the Uganda Petroleum Fund,” he said.
The award was cleared by Cabinet and the Ministries of Finance, Planning and Economic Development together with that of Justice and Constitutional Affairs. The Minister also said that on September 8the cabinet approved the award of two licenses in the Ngassa block and that the agreements would also be signed in a few weeks
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