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Uganda has extended an oil exploration license to Nigeria’s Oranto Petroleum Ltd. by two years after the company asked for compensation for time lost during the Covid-19 pandemic.
The permit had been due to expire Dec. 29, and was initially granted to scour the Ngassa Shallow and Deep areas in the western Hoima and Kikuube districts in 2017. Solomon Muyita, the spokesperson of the ministry of Energy and Mineral Development confirmed the development.
He said the extension of the permit is in line with the country’s drive to boost recoverable oil from current levels of 1.4 billion barrels.
Ruth Nankabirwa, the minister of Energy signed the extension. She urged the company to maximize the additional time granted and ensure a successful outcome.
The minister emphasised the importance of the extension, stating that it will contribute to increasing Uganda’s oil volumes.
A production sharing agreement, royalties, cost of recovery, and profit sharing are part of the terms included in the extension.
In 2017, Oranto was issued two petroleum exploration licenses for the Ngassa Deep and Ngassa Shallow contract areas.
Currently, Uganda has six billion barrels of oil in place, with 1.4 billion barrels considered recoverable. Abdul Byakagaba, the General Manager of OPL, assured that the company will fufill the work programme as planned within the designated two-year period.
Atlas Oranto Petroleum International Limited (AOPI) comprises Atlas Petroleum International Limited and Oranto Petroleum International Limited.
These two private Nigerian indigenous sister companies are fully owned by Prince Arthur Eze and his royal family from the Kingdom of Dunukofia.
The Ngassa block, which was part of Exploration Area 2 (EA2) licensed to Tullow Uganda Operations Pty Ltd (Tullow), was relinquished back to the government in 2011 as per the obligations in the Production Sharing Agreement (PSA).