Transcript Oil and gas in Uganda

DEVELOPMENTS IN UGANDA’S OIL
AND GAS SECTOR AND
OPPORTUNITIES FOR INVESTMENT
A Presentation to the
First UK- Uganda Investment Forum2010
15th September, 2010
Congress Centre, London
F. A. Kabagambe-Kaliisa
PERMANENT SECRETARY,
Ministry of Energy and Mineral Development
Email: [email protected]
Website: www.energyandminerals.go.ug
1
PRESENTATION OUTLINE
1. Introduction


The Albertine Graben
History of Petroleum Exploration
2. Recent Developments in the Upstream Oil and Gas
Sector





Status of Licensing
Data acquired
Resource Potential
Oil and gas discoveries
Current Status
3. The National Oil and Gas Policy for Uganda
4. Status of Investment in the Sector and Opportunities
6. Conclusion
Petroleum Exploration and Production Department
2
1. INTRODUCTION (1)
Albertine Graben:
Northern most part of the
Western arm of the East African
Rift System
Runs along Uganda’s western
border with DRC
Eastern Arm
Lake
Tanganyika
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IBIA
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Petroleum Exploration and Production Department
N
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.C
IV
1200 km from the coast
Lake Malawi
!.
DA
ET
AS
T
SU
NIGERIA
MA
Tertiary basin, 500 km long,
averaging 45 km wide and 23,000
sq km in Uganda
Lake Albert
1. INTRODUCTION (2)
History of Petroleum Exploration in Uganda
1920 – 1940 Early Efforts

Oil Seepages reported 1925

Drilling of Waki B1 well in
1938 by Anglo European
Investment Company of
South Africa.

Some Shallow wells drilled
in Kibiro and Kibuku areas.
Petroleum Exploration and Production Department
4
1. INTRODUCTION (3)
450000N
400000N
3600000E
.
REDUCED TO THE POLE
TOTAL MAGNETIC FIELD
.
.
1983/84
NEBBI
Water
N
G
T
O
.
.
. EA2
E
R
C
F
O
IC
EP
U
BL
To Kampala
HOIMA
AT
IC
R
Towns
MASINDI
LB
200000N
National
Boundary
Boundary
Expl. Areas
150000N
To Gulu
PARAA
LEGEND
.
EA1
ARUA
50000N
.
.
.
FORT PORTAL
0
100000N
DE
M
O
C
R
0
To Kampala
MUBENDE
To Kampala
To Masaka
KASESE
0
L. GEORGE
EA3
0
.
50000S
L. EDWARD
To Masaka
100000S
100000S
MBARARA
0
150000S
UGANDA
3300000E
50000
3350000E
0
3400000E
50000
3450000E
100000
3500000E
150000S
1983 Acquisition of
Aeromagnetic Data over the
entire Albertine Graben
 Indication of three main
depocentres conducive for
petroleum generation
3550000E
0

3500000E
MOYO
Roads
1983 – To-Date: Revival Period
3450000E
L.
A

350000N

World war II
Colonial policy
Political uncertainties
3400000E
300000N

3350000E
SUDAN
250000N
1940 – 1983: No Activity
3300000E
3550000E
3600000E
nT
-141.2
-85.8
-74.3
-64.3
-52.3
-38.2
-22.6
2.4
57.5
metre
Petroleum Exploration and Production Department
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1. INTRODUCTION (4)
Revival Period: Key Highlights









1985: Enactment of the Petroleum Act
1991: Formation of PEPD and commencement of ground
geological and geophysical data acquisition
1993: Formulation of the Petroleum Exploration and Production
Regulations
1997: Licensing of Heritage, subsequent acquisition of 2D seismic data
in 1998 and drilling of Turaco wells in 2002 – 2004
2001- 2006: Licensing of Hardman(now Tullow) in EA2, Heritage in
EAs1&3A, Neptune in EA 5.
2006: First oil discovery in Uganda made by Hardman
Resources, the Mputa discovery
2007: Licensing of Dominion in EA 4B
2008: Formulation of the National Oil and Gas Policy
2010: Oil and/or gas discoveries made totalling to 17. Appraisal program
ongoing and exploration continuing
Petroleum Exploration and Production Department
2. RECENT DEVELOPMENTS IN THE SECTOR (1)
2.1 Status of Licensing
• Albertine Graben sub
divided into 11 Exploration
Areas
• 5 Active Production
Sharing Agreements
(PSA)
• 4 Licensed Operators
Petroleum Exploration and Production Department
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2. RECENT DEVELOPMENTS IN THE SECTOR (2)
2.2 Data Acquisition
31 E
30 E
32 E
4N
±
a) Geological mapping
"S
MOYO
"S
NIMULE
LEGEND
Rift valey sediments: soils and marines
Pleistocene volcanic rocks
Ecca series shales (Karro)
"S
Mityana Series
Singo series: conglomerates, sandstone & subordinate shale
"S
ARUA
3N
ARU
Bunyoro series & Kyoga series: Shales, arkoses & quartzites
Over 10,000 sq. km geologically
mapped for petroleum
exploration
"S
Kibalian System(presumed): Amphibolites.
GULU
Madi series: shists, quartzites marbles and gneisses
Karagwe-Ankolean system
Buganda-Toro system
Mirian gneisses: flaggy gneisses, affected by the mirian tectonism in W. Nile
"S
MAHAGI
-&&
Granites
2N
Undifferentiated Gneisses
Banded gneiss of Aruan tectonic age in West Nile
Granites
-&
-&&
Cataclastites
Volcanic bodies interpreted from aeromagnetic data
&
International boundary
Depth to basement contours in 1000's m.
%
&
Lake
&
Railway
&
"S
"S
MASINDI
HOIMA
Major Road
Faults
1N
River
&
%
"S
Oil seeps
&
Waki-1 well
Town
"S
FORT PORTAL
"S
"S
MUBENDE
KASESE
0
MASAKA
"S
"S
"S
BUSENYI
ISHASHA
"S
MBARARA
RUKUNGIRI
"S
"S
Petroleum Exploration and Production Department
NTUNGAMU
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2. RECENT DEVELOPMENTS IN THE SECTOR (3)
b) Gravity and Magnetic data
7,500 line km
of gravity and
magnetic data.
 9,578 line km
of aeromagnetic
data
Petroleum Exploration and Production Department
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.
2. RECENT DEVELOPMENTS IN THE SECTOR (4)
c) Seismic data
 5,774 line km of 2D seismic data
• 2,406 km on Lake
• 3,368 km on land
 1,232.3 sq. km of 3D seismic data
 Energy source are; Dynamite, weight
drop and airguns
2000
1800
1600
1400
1200
1000
800
600
400
200
0
Petroleum Exploration and Production Department
2D Km
3D Sq. Km
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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2. RECENT DEVELOPMENTS IN THE SECTOR (5)
d) Well data
Exploration Drilling Trends in East Africa
 44 Wells drilled
• 26 Exploration
Wells
• 18 Appraisal Wells
Todate, All wells have
encountered oil and/or
gas except four
1
Petroleum Exploration and Production Department
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2. RECENT DEVELOPMENTS IN THE SECTOR (6)
130000
190000
250000
310000
2.3 Resource Potential
370000
ª
Sambia
4
Iti
EA 5
Buffalo Jobi
Giraffe Rii
1
!1
Wairindi
Leopard
Ngege
Ngara
EA2
µ0
Karuka
µ
µ
Taitai
Kisinja
Waraga
1
µµ
1
Mputa
1
* 1
EA3A
0!
11
Pelican
120000
Saddle Bill
0
Kingfisher
EA-3C

17 oil and/gas discoveries
made.

More than 50 prospects have
been identified.

numerous leads to be followed
up with seismic data.
120000
Crane
Nzizi
40000
Turaco
-40000
+1
Pelican West
30% of Albertine Graben has
been explored.
Kigogole
µ!1
1ª
Ngassa

Nsoga
!
Ntera
200000
Crocodile
Mpyo
1
1
Kasamene
Over 2 billion barrels of Oil
equivalent in place.
280000
EA 1
Warthog
Ngiri

Jobi-North
200000
280000
Hartebeest
Pura
Coucal
Legend
Exploration boundary
Wells
HydroCarbons
40000
ª
+
*
Dry Well
Gas Shows
Gas Well
µ
Oil Shows
!
Oil Well
0
Oil and Gas Shows
1
Oil and Gas Well
Prospects,Leads,Discoveries
TYPE
Lead
Oil Discovery
Oil and Gas Discovery
Ngaji
Prospect
International boundary
Lake
Mpundu
-40000
0 12.5 25
50
75
Nkobe
100
Kilometers
EA-4B
130000
190000
250000
310000
Petroleum Exploration and Production Department
370000
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2. RECENT DEVELOPMENTS IN THE SECTOR (7)
2.4 Discoveries
Waraga-1:
33.80 API ,
flowed
12,050 bopd
Kingfisher: 33 API , flowed
14,000 bopd.
Nzizi-2 well tested 14mm scf/d of clean dry methane
Mputa-1: 33.3 API flowed 1,035 bopd.
Four discoveries namely Mputa, Kajubirizi (Kingfisher), Kasamene and Nzizi at Field
Development Stage.
These fields (Mputa, Kajubirizi & Kasamene) hold in excess of 700 million barrels recoverable
reserves
Type of crude is 30-34 API low sulphur, waxy crude, Pour point of ~40 degrees Celsius.
Petroleum Exploration and Production Department
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2. RECENT DEVELOPMENTS IN THE SECTOR (8)
CURRENT STATUS
Exploration
• Exploration continues in Exploration Areas 1, 4B and 5
• Appraisal is being undertaken on the discoveries made in
Exploration Areas 1 and 2
Development
• Exploration Areas 2 and 3A are at the development stage
• Draft Field Development Plans have been submitted for
Kingfisher, Kasamene and Nzizi discoveries
Petroleum Exploration and Production Department
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2. RECENT DEVELOPMENTS IN THE SECTOR (9)
DEVELOPMENT: Integrated Power Project (IPP)
The gas to power
concept delivers gas from
Nzizi discovery to fuel a
50MW power plant,
supplemented by test
crude from EWT
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Petroleum Exploration and Production Department
2. RECENT DEVELOPMENTS IN THE SECTOR (10)
DEVELOPMENT: Extended Well Testing (EWT)
 Longer testing operations allows for
larger
area of investigation.
 Improved understanding of STOIIP
 Testing without flaring
 Enabler for testing in sensitive
environments and close to communities
 Establishes early production experience:
Essential input
into overall development
 Transportation schemes. Essential for
Production Infrastructure
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Petroleum Exploration and Production Department
2. RECENT DEVELOPMENTS IN THE SECTOR (11)
DEVELOPMENT: Basin wide Development
 Central Hub being
considered
 Loading Hub to refinery
and to the Market
Source: Draft report of feasibility study on in-country refining
Petroleum Exploration and Production Department
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2. RECENT DEVELOPMENTS IN THE SECTOR (12)
DEVELOPMENT: Value Addition through Refining
 Feasibility
study for
refining in the Country
undertaken.
Report being discussed
Recommends location,
size, configuration
financing options and
market for the products
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Petroleum Exploration and Production Department
3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (1)
3.1 Energy Policy
Key Policy objectives from the mid 1980s were
covered in the Energy Policy and 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.
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Petroleum Exploration and Production Department
3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (2)
3.2 Issues
Confirmation of commercially exploitable quantities
of oil and gas raises the following key issues:
1.
2.
3.
4.
5.
6.
7.
8.
Institutional Development
Size of Reserves
Oil and Gas Revenue Management
Impact of Oil and Gas Activities
Contribution of Oil and Gas Resources to the Energy Mix
Investment Promotion
National Participation
Public Anxiety and Expectations
Petroleum Exploration and Production Department
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3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (3)

To deal with the emerging issues, a new policy, the National Oil and Gas Policy
for Uganda has been put in place.

The Policy was formulated through a wide consultative process and approved
by Cabinet Feb 2008

The goal of the policy is;
‘to use the country’s oil and gas resources to contribute to early
achievement of poverty eradication and create lasting value to
society’
3.3 Guiding Principles
1.
2.
3.
4.
5.
6.
7.
Using finite resources to create lasting benefit to society.
Efficient resource management.
Transparency and accountability.
Competitiveness and productivity.
Protection of environment and conservation of biodiversity.
Spirit of co-operation.
Capacity and institution building.
Petroleum Exploration and Production Department
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3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (4)
3.4 Implementation of Policy has commenced;

Drafting of new petroleum legislation to operationalise policy.

Support for the introduction of training courses focusing on petroleum
industry done. BSc Petroleum Geoscience at Makerere, Artisan and
technical training at Uganda Petroleum Institute, Kigumba.

Studies undertaken on refining in Uganda.

Communication Strategy for oil and gas is being developed.

Close monitoring of environment and biodiversity being undertaken.

New institutions are being put in place.

Local content study being undertaken to ensure optimum national
participation in oil and gas activities.
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Petroleum Exploration and Production Department
4. STATUS OF INVESTMENT IN THE SECTOR (1)
INVESTMENTS
DATA TYPE
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009*
Investments (US$
Million)
3
0.2
0.25
4
5
15
20
12
50
150
250
436
T OT AL F OR E IG N INV E S T ME NT IN T HE UP S T R E AM P E T R OL E UM
S UB S E C T OR
435.8
450.0
Inves tm ent (US $ Million)
400.0
350.0
277.9
300.0
250.0
200.0
126.0
150.0
100.0
46.0
50.0
15.120.012.0
0.0 3.0 0.2 0.3 4.1 5.0
1998
2000
2002
2004
2006
Ye a r
Petroleum Exploration and Production Department
2008
Over US$900m invested in seismic
and drilling of wells since 1998.
Bigger investments required to
appraise and develop discovered oil
and gas fields as well as infrastructure
for transportation and refining.
Investments will require developing
and
ensuring
a
conducive
environment for sustaining the
required levels of investment.
4. STATUS OF INVESTMENT IN THE SECTOR (2)
Petroleum Exploration and Production Department
24
5. INVESTMENT OPPORTUNITIES IN THE OIL AND
GAS SECTOR

Participation in licenses for the new and relinquished
acreages after formulation of new legislation.

Joint Ventures and farm in arrangements in existing
licences.

Capital for the emerging infrastructure such as refining
and transportation of petroleum commodities and
products

Service provision and contracts in the fields of
Engineering, Procurement, Construction, Environmental
consultancy, etc, for the upstream and midstream
facilities.

Power generation by Independent Power Producers.
Petroleum Exploration and Production Department
6. CONCLUSION
1. Petroleum exploration in Uganda has been ongoing since early
1920s.
2. Commercially Exploitable Reserves of oil have now been
confirmed in Uganda.
3. Government has put in place a policy to guide development of
the sector.
4. Implementation of Policy has commenced;
5. The oil industry in Uganda has potential of providing a lot of
investment opportunities to oil companies and other investors in
the industry.
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Petroleum Exploration and Production Department
Petroleum Exploration and Production Department
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Petroleum Exploration and Production Department
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