Government commits to develop oil and gas sector in an efficient manner

Government has expressed its commitment to develop the oil and gas industry in the country in partnership with all the stakeholders in an efficient and effective manner.

The remarks were made during a bidders' conference for the second licensing round for petroleum exploration, development and production.

Government held a bidders' conference for the second licensing round to provide clarifications to the request for proposals document, relevant laws, regulations and the Model Production Sharing Agreements (MPSA).

The conference was held both physically at Lake Victoria Serena Golf Resort hotel and virtually to cater for bidders who were unable to appear physically due to effects of Covid-19 pandemic.

Four applicants/ potential bidders were issued with the bidding documents on January 5 2021 to facilitate in their bid applications.

The bidding documents consisted of: request for proposal document, Model Production Sharing Agreement, Draft Production Sharing Agreements for each of the 5 blocks, The Petroleum (Exploration, Development and Production) (Sale of Data) (Amendment) Regulations 2020, Model Confidentiality Agreement for purchase of data.

Representatives for all of the four (4) qualified applicants save for the joint venture between Petro-Afrik (Uganda) and Niger Delta Petroleum resources Limited (Nigeria) participated in the bidders conference.

The participants also included CNOOC Uganda Limited who partnered with Total E&P and notified the Ministry on May 27 2021 to submit a joint bid as per the provision in the request for proposal document which allows change of a single bidder to joint bidder.

Frank Mugisha, the acting commissioner and manager, Second Licensing Round said an overview of the oil and gas sector and key aspects of the Second Licensing Round gave status of legislation and institutional framework in the oil and gas sector and emphasized the process and criteria that will be used when evaluating the bid applications.

He said the country’s oil and gas regulatory and institutional frameworks are not only modern but also investor friendly. He concluded by saying that implementation of this Licensing Round will continue to be undertaken in the most transparent and predictable manner.

The five biddable blocks comprise of the Avivi covering the districts of Obongi, Adjumani, Amuru and part of Arua and with an aerial coverage of 1026 square kilometres; Omuka covering the districts of Nebbi, Nwoya and Buliisa and with an aerial coverage of 750 square kilometres; Kasuruban covering the districts of Buliisa, Hoima and Masindi and with an aerial coverage of 1285 square kilometres; Turaco covering the districts of Ntoroko and with an aerial coverage of 635 square kilometres, and Ngaji covering the districts of Kanungu, Rukungiri and Rubirizi with an aerial coverage of 1230 square kilometres.