By URN
Uganda National Oil Company (UNOC) finally commences oil and gas exploration activities, two years after they acquired the license from the government.
This follows the Ministry of Energy and Mineral Development’s decision to approve UNOC’s application for the renewal of the Kasuruban Contract Area (KSCA) exploration license earlier this month, for an additional two years.
Kasurubani Area covers parts of Buliisa, Hoima and Masindi districts.
The lack of the required expertise and resources, however, meant that UNOC had to get a competent partner to effectively implement the license, and they got Env-tech Consult, a subsidiary of Env Tech Inc. of Singapore.
The approval followed the successful implementation of the license obligations for the first period that was granted on February 2, 2023, according to the Ministry.
Following the license renewal, UNOC promised to intensify the exploration activities in the block in line with the company’s deliberate oil and gas reserves replacement plan.
UNOC says they have now “hit the ground running” following the Ministry’s renewal of the license.
“In conjunction with Env-tech, a consultant, we have embarked on the scoping activities for the Environmental Social Impact Assessment (ESIA) activities,” says a statement from the company.
So far they have had meetings with key stakeholders in the three districts where the activities are taking place.
After the ESIA, UNOC will move on to collect 2-dimension seismic data. A 2D seismic survey is a geophysical method that uses sound waves to create a two-dimensional image of the subsurface geology by recording data along a single straight line. It provides a cross-section view of the rock layers beneath the surface, typically used in the early stages of exploration, to the presence of oil and gas and other liquid or semi-liquid substances.
The Kasurubani is one of UNOC’s projects focusing on discovering more oil and gas resources in the country.
UNOC acquired the petroleum exploration license for Kasuruban, an oil and gas block in Western Uganda in February 2023.
It also signed a Production Sharing Agreement (PSA) with the Ministry of Energy and Mineral Development (MEMD), following cabinet approval to award UNOC an exploration license and sign the PSA in January.
Kasuruban block spans 1,285 square kilometres in Buliisa, Hoima and Masindi districts and is the biggest of the five blocks the ministry announced in the second licensing round in May 2019.
The following two years were characterised by delays following the COVID-19 outbreak that affected oil and gas activities worldwide.
“We, therefore, appreciate the effort and commitment shown by UNOC that has been cooperative throughout the process, which shows their resilience and commitment to supporting the development of the oil and gas sector,” said Ruth Nankabirwa, the Minister and also a UNOC shareholder.
She also disclosed that UNOC had paid a 100,000 Dollar (370 Million Shillings) signature bonus and an annual acreage rental fee of 25,700 Dollars (94 Million Shillings) that was deposited in the Petroleum Fund, as well as research and training fees totalling 30,000 Dollars (110 million Shillings).
This brought the total payment by UNOC to 155,700 Dollars (about 574 Million Shillings) as necessary fees oil and gas companies are required to pay before a license is granted.
