Summary:
- Uganda has granted a two-year extension to Nigeria’s Oranto Petroleum Ltd. for oil exploration, compensating for COVID-19-related delays, with terms including production sharing, royalties, and profit sharing.
Uganda has granted a two-year extension to the oil exploration license held by Nigeria’s Oranto Petroleum Ltd. in response to the company’s request for compensation due to time lost amid the COVID-19 pandemic.
Originally set to expire on December 29, the permit was initially issued for the exploration of the Ngassa Shallow and Deep areas in the western Hoima and Kikuube districts in 2017, as stated by Solomon Muyita, the Energy Ministry spokesperson, in an email.
The extension aligns with Uganda’s efforts to increase recoverable oil beyond the current 1.4 billion barrels, according to the official statement.
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The extended agreement encompasses a production sharing arrangement, royalties, cost recovery, and profit-sharing terms, according to the Ministry.
TotalEnergies SE, a French oil giant, leads the development of Uganda’s oil fields in collaboration with China’s Cnooc Ltd. and Uganda National Oil Co.
Uganda aims to commence oil production by 2025.
