Uganda is set to launch its third petroleum exploration licensing round in the 2025/2026 fiscal year. This initiative will open new areas for oil and gas exploration amid ongoing development projects in the East Africa Crude Oil Project and the redevelopment of the Kilembe copper mine. With 6.5 billion barrels of oil reserves and efforts to reactivate mining, Uganda aims to bolster its energy and mining industries.
The government of Uganda has announced its intention to initiate a third petroleum exploration licensing round, with Energy and Mineral Development Minister Ruth Nankabirwa confirming a launch timeframe set for the fiscal year 2025/2026. This round is expected to open new areas for oil and gas exploration; however, the specific regions targeted—whether within the Albertine Graben or the northern and northeastern basins—remain unspecified.
Uganda, which has harbored crude oil discoveries in the Albertine Graben for nearly two decades, anticipates the commencement of oil production within this year. In tandem with these developments, the government has selected a winner to revitalize the Kilembe copper mine, positioned near the border with the Democratic Republic of Congo.
Final negotiations pertaining to the mine’s redevelopment are in the advanced stages, with an announcement forthcoming. Holding an estimated 4 million tonnes of ore, the mine features a copper grade of 1.98% and a cobalt grade of 0.17%. This mine has remained inactive since the early 1970s due to fluctuations in copper prices and political challenges post-abandonment by the Canadian company Falconbridge.
These initiatives reflect Uganda’s strategic efforts to revitalize its mining sector while simultaneously extending its oil and gas industry. Uganda boasts 6.5 billion barrels of oil reserves, of which approximately 1.4 billion barrels are deemed economically recoverable, primarily situated in western Uganda bordering the Democratic Republic of the Congo. The Kingfisher and Tilenga basins within the Lake Albert Basin serve as focal areas for ongoing oil development.
Development drilling efforts for Uganda’s East Africa Crude Oil Project commenced in mid-2023, and as of August 2024, the Tilenga project has successfully completed 63 of the 426 planned wells, while the Kingfisher project has drilled nine production wells.
The announcement of Uganda’s third petroleum exploration licensing round signals the government’s commitment to enhancing its oil and gas sector. With significant oil reserves and the anticipation of production beginning shortly, Uganda seeks to tap into its natural resources more effectively. The previously dormant Kilembe copper mine signifies a broader effort to reactivate and modernize the mining sector, showcasing the country’s rich mineral wealth and paving the way for future industrial growth.
In conclusion, Uganda is poised to expand its oil and gas exploration initiatives with the upcoming licensing round, alongside revitalizing its mining sector through the redevelopment of the Kilembe copper mine. These steps underscore the government’s commitment to harnessing the country’s abundant natural resources for economic development, with expectations of significant contributions from both the oil and mining industries to the nation’s economy in the coming years.
Original Source: pumps-africa.com
