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Presented at a

Training Workshop for Senior Editors


by
Africa Centre for Media Excellence Offices, Kampala
18
th
September, 2012
Ernest N. T Rubondo | COMMISSIONER
Petroleum Exploration and Production Department

1
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
PRESENTATION OUTLINE
1. Introduction
2. Status of the Oil and Gas Sector
Exploration and Development
Investment
3. Legal and Regulatory Framework
4. National Oil and Gas Policy for Uganda
Basis and process of formulation
Progress of Policy Implementation (2008 to date)
5. Expectations from the Media
6. Concluding Remarks
2
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
3
DEVELOPMENT
PRODUCTION
INTRODUCTION (1)
THE PETROLEUM VALUE CHAIN
LICENSING
EXPLORATION
DEVELOPMENT
PRODUCTION
DECOMMISSIONING
UPSTREAM
DISTRIBUTION
MARKETING
SALES
TRANSPORTATION
REFINING
GAS PROCESSING
MIDSTREAM
DOWNSTREAM
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
4
LICENSING
EXPLORATION
APPRAISAL
DEVELOPMENT
PRODUCTION
U P S T R E A M MI D S T R E A M D O WN S T R E A M
TRANSPORTATION
REFINING
GAS PROCESSING
DISTRIBUTION
MARKETING
SALES
Exploration & Appraisal: Search for petroleum
accumulations , Includes Establishing presence,
Content ease of flow and Extent of distribution
Development: Preparing reservoir for Production,
Preparing facilities for Collection and Processing
Production: Removal of petroleum from subsurface
reservoirs to the surface, Preparing petroleum for
Transportation and Refining
Converting oil and gas into
marketable products and
chemicals
Marketing and distribution for
Customer satisfaction and Profit
earning
Efficient movement of oil and gas
products I bulk mainly by
pipeline, road tankers, ocean
tankers and rail wagons
Introduction (2)
THE PETROLEUM VALUE CHAIN
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
5
SEDIMENTARY BASINS AND THE PETROLEUM SYSTEM
Overburden Rock
Seal Rock
Reservoir Rock
Source Rock
Underburden Rock
Basement Rock
Top Oil Window
Top Gas Window
O O
S
e
d
i
m
e
n
t
a
r
y

B
a
s
i
n

F
i
l
l

O
Stratigraphic
Extent of
Petroleum
System
Pod of Active
Source Rock
Extent of Prospect/Field
Geographic Extent of Petroleum System
Essential
Elements
of
Petroleum
System
O O
O
Stratigraphic
Extent of Petroleum
System
Extent of Play
SEDIMENTARY BASIN
A depression created
as a consequence of
subsidence, that fills
with sediment

Thick layers of
sedimentary rocks get
laid down over a long
period of time
Generalized Petroleum System (Source: modified from Magoon and Dow, 1994)
Introduction (3)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
6
SEDIMENTARY BASINS OF AFRICA
Sedimentary Basin in Africa
Introduction (4)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
7
POTENTIAL FOR
PETROLEUM EXPLORATION
Albertine Graben
1
Hoima Basin
Lake Kyoga Basin
Kadam-Moroto Basin
2
Lake Wamala Basin
Lake Victoria Basin
3
Lake
Edward
Lake
George
LAKE
VICTORIA
Lake
Wamala
HOIMA BASIN
LAKE WAMALA
BASIN
LAKE KYOGA
BASIN
LAKE
KYOGA
Sedimentary Basin in Uganda (Source: PEPD)
Introduction (5)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
1920 1945: PRELIMINARY EXPLORATION
Reporting of oil seepages
Drilling of Waki-B1 in 1938 by Anglo European
Investment Company
Shallow stratigraphic wells drilled in Kibiro,
Butiaba and Kibuku based on oil seeps
8
HISTORY OF PETROLEUM EXPLORATION
1945 1980: STAGNATION
Initially due to World War II
Change in Colonial Policy
Later due to political uncertainties
Stratigraphic wells and early oil seep reporting (Source: PEPD)
LAKE VI CTORIA
Lake
Edward
Lake
George
L
a
k
e

A
l
b
e
r
t
Ri ver Sem
li ki
Ri ver Katonga
Ri ver Kafu
Lake
Wamala
UGANDA
TANZANIA
RWANDA
SUDAN
D
.

R

C
O
N
G
O

V
i cto
ri a
N
i l e
A
l
b
e
r
t

N
il
e

0 50 km
32
0
E 31
0
E 30
0
E
3
0
N
2
0
N
1
0
N
0
0

1
0
S
LEGEND
Rift Sediments
International Boundary
Major Roads
Faults
Rivers
HOIMA
MASINDI
FORT PORTAL
MAHAGI
N
Oil Seep
Statigraphic Wells
Town
20 N
10 N
20 N
10 N
310 E
310 E
13 Shallow
wells (1956)
9 Shallow wells
(1956)
20 Shallow
wells (1956)
Introduction (6)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
9
HISTORY OF PETROLEUM EXPLORATION
1980 to Date: CONSISTENT AND MODERN EFFORTS
Aero magnetic survey carried out in 1980.
Petroleum Law enacted in 1985.
Intensive promotion led to attraction of investment
The first seismic data was acquired in the country
1998 by Heritage Oil and Gas in Semliki Basin
In 2002, the Second deep well, Turaco-1 was
drilled in the country since 1938
First Commercial discovery of crude oil in 2006
Further discoveries of new oil and gas made
Drilling of the Turaco-1 well
Introduction (7)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
STATUS OF THE OIL AND GAS SECTOR
10
EXPLORATI ON
AND APPRAI SAL
DEVELOPMENT
AND
PRODUCTI ON
I NFRASTRUCTURE
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
11
The Albertine Graben is subdivided into
17 Licence Areas
Five (5) Active Production Sharing
Agreements (PSAs)
4 License Operators (Tullow, Total,
CNOOC and Dominion)
Licensing is currently on halt awaiting
completion of a new regulatory
framework for the sector.
Future Licensing to be undertaken
through competitive bidding
Licensees in the country changing from
small to major oil companies.
ACREAGE/LICENCES
Ri ver Katonga
Ri ver Kafu
UGANDA
TANZANIA
RWANDA
SUDAN
DEMOCRATIC
REPUBLIC OF CONGO
0 50 km
N
320 E 310 E 300 E
30 N
20 N
10 N
00
10 S
Lake
Edward
L
a
k
e
A
lb
e
r
t
Ri ver Semli ki
Lake
Wamala
V
ictoria N
ile
A
l b
e
rt N
il e

Lake
George
LAKE VICTORIA
EA5B
EA2
EA3A
EA3B
EA3C
EA3D
EA4A
EA4C
EA4D
EA1A
EA1
EA5A
EA4B
3
0
N
2
0
N
1
0
N
0
0
1
0
S
3
0
N
2
0
N
1
0
N
0
0
1
0
S
32
0
E 31
0
E 30
0
E
32
0
E 31
0
E 30
0
E
Status of Licensing in the Albertine Graben (Source: PEPD)
LEGEND
Rift Sediments
Open Exploration Area
EA1 Licensed to Total E&P (U) B.V,
Tullow Uganda Ltd and CNOOC (U) Ltd
on 3
rd
February 2012
EA4B Licensed to Dominion Petroleum
Ltd on 27
th
July 2007
Buliisa Discovery Area under appraisal
by Total E&P (U) B.V, Tullow Uganda
Ltd and CNOOC (U) Ltd
Kingfisher production licence to Total
E&P (U) B.V, Tullow Uganda Ltd and
CNOOC (U) Ltd on 3
rd
February 2012
River
International Boundary
Paara Discovery Area under appraisal
by Total E&P (U) B.V, Tullow Uganda
Ltd and CNOOC (U) Ltd
Kaiso-Tonya Discovery Area under
appraisal by Total E&P (U) B.V, Tullow
Uganda Ltd and CNOOC (U) Ltd
Kanywataba Prospect Area licence to
Total E&P (U) B.V, Tullow Uganda Ltd
and CNOOC (U) Ltd on 3
rd
Feb 2012
Status of the Oil and Gas Sector (2)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Status of the Oil and Gas Sector (3)
12
DATA ACQUIRED
Large amounts of geological, geophysical and engineering
data acquired by the Ministry mainly to attract investment
Over 10,000 km
2
the area around the sedimentary
basins above has been geologically mapped for
petroleum exploration
7,500 line km of gravity and magnetic data
9,578 line km of aeromagnetic data
GRAVITY, MAGNETIC AND GEOLOGICAL MAPPING
50 0 50Km
(Kilometers)
Arc 1960 / UTM zone 36N
-217.9 -176.8 -158.4 -148.3 -142.4 -137.6 -132.4 -125.4 -119.8 -116.5 -111.3 -92.7
Gravity anomaly
(mGals)
LEGEND
International boundary
Roads
Lakes
Exploration Areas
-
1

0
0
'
-
0

3
0
'
0

0
0
'
0

3
0
'
1

0
0
'
1

3
0
'
2

0
0
'
2

3
0
'
3

0
0
'
3

3
0
'
-
1

0
0
'
-
0

3
0
'
0

0
0
'
0

3
0
'
1

0
0
'
1

3
0
'
2

0
0
'
2

3
0
'
3

0
0
'
3

3
0
'
2930' 3000' 3030' 3100' 3130' 3200'
2930' 3000' 3030' 3100' 3130' 3200'
6 1 2 -
8
0
2
-
8
0
2 -
0
0
2
-
2
9
1
-
4
8
1
-
4
8
1
-
-
1
7
6
6
7
1
-
6
7
1
-
- 1
6
8
8
6
1
-
8
6
1
-
-
1
6
0
- 1
6
0
0
6
1
-
0
6
1
-
-
1
5
2
-
1
5
2
- 1 5 2
-
1
5 2
2
5
1
-
2 5 1 -
-
1
4
4
4
4
1 -
4
4
1
-
4 4 1 -
-
1
4
4
4
4
1
-
4
4
1
-
-
1
3
6
6
3
1
-
6
3
1
-
-
1
3
6
-
1
3
6
6 3 1 -
6
3
1 -
6
3
1
-
-
1
3
6
-
1
2
8
- 1
2
8 -
1
2
8
-
1
2
8
8
2
1
-
-
1
2
8
8
2
1
-
8 2
1 -
-
1
2 0
-
1
2
0
0 2 1 -
0
2
1 -
0
2
1
-
0
2
1
-
0
2 1 -
-
1
1
2
-
1
1
2
- 1
1
2
2
1
1
-
2 1 1 -
- 1
0
4
- 1 0
4
4
0
1
-
-
1
0
4
4 0 1 -
4 0 1 -
-
9
6
6
9
-
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
13
DATA ACQUIRED
LAKE VI CTORIA
Lake
Edward
Lake
George
L
a
k
e

A
lb
e
rt
Ri ver Semli ki
Ri ver Katonga
Ri ver Kafu
Lake
Wamala
UGANDA
TANZANIA
RWANDA
SUDAN
DEMOCRATIC REPUBLIC
OF CONGO
Vi ctori a Ni l e
0 50 km
N
32
0
E 31
0
E 30
0
E
3
0
N
2
0
N
1
0
N
0
0
1
0
S
LEGEND
Rift Sediments
Oil well
Oil and Gas well
Gas well
Drywell
2-D seismic line
Area Boundary
3-D seismic coverage
ITI -1
AVIVI-1
NGAJI-1
MVULE-1
KINGFISHER-1 KINGFISHER-2
KINGFISHER-3
TURACO-1, 2 & 3
MPUTA-1, 3, 4 & 5
NZIZI -1, 2 & 3
WARAGA-1
MPUTA-2
NGASSA1 & 2
KARUKA-2
TAI TAI-1
WAKI-1
KARUKA-1
NSOGA-1&5
MPYO-1&3
JOBI-EAST-5
JOBI-EAST-1&2
JOBI-1&2
RII-1
NGIRI-1
KASAMENE-1,2&3
NGEGE-1&2
KIGOGOLE-1,2,3,4,5&6
NGARA-1
AWAKA-1
Oil shows
3
0
N
2
0
N
1
0
N
0
0

1
0
S
3
0
N
2
0
N
1
0
N
0
0

1
0
S
32
0
E 31
0
E 30
0
E
32
0
E 31
0
E 30
0
E
7,194 line km of 2-D seismic data
1,608 km
2
of 3-D seismic data, on land
and Lake Albert
The data acquired was used to identify
hydrocarbon Prospects and Leads in the
Albertine Graben
Some of the Prospects have been
followed up by drilling
SEISMIC DATA
Status of the Oil and Gas Sector (4)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
14
DATA ACQUIRED
WELLS DRILLED
Drilling success trend (Source : PEPD)
JOBI DISCOVERY
JOBI-1
JOBI-2
JOBI-2A
JOBI-3
RII DISCOVERY
RII-1
NGIRI DISCOVERY
NGIRI-1
NGIRI-2
NGIRI-3
MPYO DISCOVERY
MPYO-1
MPYO-3
GUNYA DISCOVERY
GUNYA-1
NGEGE DISCOVERY
NGEGE-1
NGEGE-2 & 2A
NGEGE-3
NGEGE-4
NGEGE-5
NGEGE-6
NGARA DISCOVERY
NGARA-1
KIGOGOLE DISCOVERY
KIGOGOLE-1
KIGOGOLE-2
KIGOGOLE-3
KIGOGOLE-4
KIGOGOLE-5
KIGOGOLE-6&6A
TAITAI DISCOVERY
TAITAI-1
TAITAI-1A
KASAMENE &WAHRINDHI
DISCOVERIES
WAHRINDI-1
KASAMENE-1
KASAMENE-2
KASAMENE-3&3A
NSOGA DISCOVERY
NSOGA-1
NSOGA-2&2A
NSOGA-5
KARUKA DISCOVERY
KARUKA-1
KARUKA-2
NGASSA DISCOVERY
NGASSA-1
NGASSA-2
WARAGA DISCOVERY
WARAGA-1
MPUTA DISCOVERY
MPUTA-1
MPUTA-2
MPUTA-3
MPUTA-4
MPUTA5
NZIZI DISCOVERY
NZIZI-1
NZIZI-2
NZIZI-3
KINGFISHER DISCOVERY
KINGFISHER-1&1A
KINGFISHER-2
KINGFISHER-3&3A
TURACO DISCOVERY
TURACO-1
TURACO-2
TURACO-3
NGAJI-1
MVULE-1
ITI-1
AVIVI-1
AWAKA-1
KANWYATABA-1
Status of the Oil and Gas Sector (5)
1 1 1 1
5 5
13
9
10
8
22
3
3
2
0
1
2
3
4
5
6
7
8
0
5
10
15
20
25
30
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
P
r
o
j
e

N
u
m
b
e
r

o
f

A
c
r
e
a
g
e
s

N
u
m
b
e
r

o
f

W
e
l
l
s

YEAR
DRILLING SUCCESS TREND IN THE ALBERTINE
GRABEN
Discovery
90%
10%
DRILLING SUCCESS RATE
Success
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
15
DISCOVERIES AND RESOURCES
20 oil and/or gas
discoveries made to date
Over 3.5 billion barrels of
STOIIP established
Estimated 1.0 billion barrels
of recoverable oil equivalent
Appraisal of the discoveries
is ongoing
Less than 40% of the
Albertine Graben has been
evaluated
LAKE VI CTORIA
Lake
Edward
Lake
George
L
a
k
e

A
l
b
e
r
t
Ri ver Sem
li ki
Ri ver Katonga
Ri ver Kafu
Lake
Wamala
UGANDA
TANZANIA
RWANDA
SUDAN
DEMOCRATIC REPUBLIC
OF CONGO
V
i cto
ri a
N
i l e
A
l
b
e
r
t

N
il
e

0 50 km
N
32
0
E 31
0
E 30
0
E
3
0
N
2
0
N
1
0
N
0
0

1
0
S
LEGEND
Rift Sediments
Exploration Area Boundary
Oil Discovery
Oil and Gas Discovery
Gas Discovery
2
0
N
1
0
N
2
0
N
1
0
N
32
0
E
31
0
E
30
0
E
32
0
E
31
0
E 30
0
E
Kingfisher
Ngassa
Mputa
Nzizi
Waraga
Kasamene
Waihrindi
Nsoga
Ngege
Kigogole
Ngara
Jobi
Rii
Ngiri
Mpyo
Gunya
Discoveries in the Albertine Graben (Modified from Rubondo et al., 2011 and Ongodia, 2011)
Status of the Oil and Gas Sector (6)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
16
DISCOVERIES AND RESOURCES
This resource base now put Uganda in the league of countries like Peru,
Trinidad and Tobago, Denmark, Italy and Romania
Chad, Congo Brazaville, Equatorial Guinea and Tunisia in Africa
Brunei and Thailand in Asia; among others
It is also still a long way from the tens of billion in Nigeria, Libya and the
USA or the hundreds of billions of barrels in Iran, Iraq, Kuwait, Venezuela
or Saudi Arabia
Status of the Oil and Gas Sector (7)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
17
ONGOING WORK
Status of the Oil and Gas Sector (8)
EXPLORATION
Kanywataba Prospect Area
The Kanywataba-1 well was drilled by CNOOC (U) Ltd
in the Kanywataba Prospect area, on the southern
edge of Lake Albert
The Total Depth (TD) was 2,103m BRT

Exploration Area 1A
GORE Geochemical surveys concluded during June
2012. Samples collected are currently being analyzed
TOTAL E&P (U) b.v acquired Full Tensor Gradiometry
(FTG) data to further optimize on the planning for the
2D and 3-D seismic survey in EA1 and 1A
Plans to commence drilling exploration wells at the end
of this year.
The Kanywataba-1 exploration well
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
18
ONGOING WORK
Status of the Oil and Gas Sector (9)
APPRAISAL
Exploration Area 2
Kasamene
Waraga
Ngege
Nsoga
Kigogole
Waihrindi
Ngara
Wells drilled in the Albertine Graben and discoveries made (Source: PEPD)
Exploration Area 1
Jobi
Rii
Mpyo
Ngiri
Gunya
Jobi-East
PRODUCTION LICENCES
Production Licence Applications have been
received for the Mputa and Nzizi discoveries and
are under consideration. Kingfisher discovery
awaiting submission of an acceptable FDP.
JOBI DISCOVERY
JOBI-1
JOBI-2
JOBI-2A
JOBI-3
RII DISCOVERY
RII-1
NGIRI DISCOVERY
NGIRI-1
NGIRI-2
NGIRI-3
MPYO DISCOVERY
MPYO-1
MPYO-3
GUNYA DISCOVERY
GUNYA-1
NGEGE DISCOVERY
NGEGE-1
NGEGE-2 & 2A
NGEGE-3
NGEGE-4
NGEGE-5
NGEGE-6
NGARA DISCOVERY
NGARA-1
KIGOGOLE DISCOVERY
KIGOGOLE-1
KIGOGOLE-2
KIGOGOLE-3
KIGOGOLE-4
KIGOGOLE-5
KIGOGOLE-6&6A
TAITAI DISCOVERY
TAITAI-1
TAITAI-1A
KASAMENE &WAHRINDHI
DISCOVERIES
WAHRINDI-1
KASAMENE-1
KASAMENE-2
KASAMENE-3&3A
NSOGA DISCOVERY
NSOGA-1
NSOGA-2&2A
NSOGA-5
KARUKA DISCOVERY
KARUKA-1
KARUKA-2
NGASSA DISCOVERY
NGASSA-1
NGASSA-2
WARAGA DISCOVERY
WARAGA-1
MPUTA DISCOVERY
MPUTA-1
MPUTA-2
MPUTA-3
MPUTA-4
MPUTA5
NZIZI DISCOVERY
NZIZI-1
NZIZI-2
NZIZI-3
KINGFISHER DISCOVERY
KINGFISHER-1&1A
KINGFISHER-2
KINGFISHER-3&3A
TURACO DISCOVERY
TURACO-1
TURACO-2
TURACO-3
NGAJI-1
MVULE-1
ITI-1
AVIVI-1
AWAKA-1
KANWYATABA-1
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
INVESTMENTS IN THE SECTOR (1)
19
INVESTMENTS MADE
1
st
Major Discovery
0 0 0 0
1
2
3
4
9
14
27
36
49
60
82
0
10
20
30
40
50
60
70
80
90
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
2,000.0
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
P
r
o
j
e
c
t
i
o
n
s
N
o
.

o
f

W
e
l
l
s

d
r
i
l
l
e
d

I
n
v
e
s
t
m
e
n
t

(
U
S
$
m
i
l
i
o
n
)

YEAR
INVESTMENT TREND IN THE OIL AND GAS SECTOR
Cummulative Investment Cuumulative No. of Wells
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
INVESTMENTS IN THE SECTOR (1)
20
INVESTMENTS MADE
Industry is capital intensive and high risk
At the end of 2011 the investment made mainly in risk capital invested in seismic
surveys, exploratory and appraisal drilling was over $1.3 billion
Sharp increase in investment at first discovery
This is significant investment and will rise to many fold with further investments
expected in field development, production of the crude oil, processing and
transportation facilities
The costs incurred in the sector in the country so far are classified as Finding
Costs
Means the costs of finding commercial reserves of oil in USD per barrel
On the global scale, the finding costs range between $5 - $25 per barrel



MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
21
RECOVERABLE COSTS
ACM BUDGET
APPROVAL
FIELD MONITORING
BY MEMD
COST RECOVERY
AUDIT
APPROVAL OF
PROCUREMENT
PROCEDURE
The Advisory Committee
receives, considers and
approves work programme &
budget on an annual basis

To ensure that the proposed
budget is acceptable

Composed of MEMD,
MoFP&ED, MoJ&CA and the
Licensees
Licensees expected to
develop the Procurement
procedures in
consultation with GoU

MEMD currently working
with the PPDA to
develop a harmonized
Procurement procedure
MEMD monitors activities
of licensees on 24-hour
basis

To ensure that work
programme are
implemented as agreed
and in accordance with
approved budgets
The Auditor General (AG)
has overall mandate of
scrutinizing the costs

The AG finally approves the
expenditure that should be
recovered by the licensees

The AG and hence
Parliament has the mandate
to suggest improvements
where necessary
Multiple licences
National Oil Company
Investments in the Sector (2)
MINIMUM LICENCE
WORK PROGRAM
The PSA provides
for minimum work
programme
commitment

A minimum level of
exploration work
guaranteed by the
framework
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Ugandas Petroleum Exploration and Production is Governed by:

The Petroleum (Exploration and Production) Act 1985, Cap 150,
Laws of Uganda ( revised in 2000)

Petroleum (Exploration and Production) (Conduct of Exploration
Operations) Regulations, 1993

Environment, Wildlife, Water , Income Tax, Land, Statutes and
Guidelines

The National Oil and Gas Policy for Uganda, 2008

22
LEGAL AND REGULATORY FRAMEWORK)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
23
Production Sharing Agreements
Fiscal Systems (Petroleum Contracts) used around the
world;
Concessions / Royalty/Tax Agreements
Company acquires a right to explore and develop hydrocarbons at its sole risk and
agrees to pay royalties, income taxes, petroleum revenue taxes etc in accordance
with the laws and regulations of the host govt.
The govt grants title to resource rights to the concessionaire company has all the
control on production rates and marketing (pricing and lifting).
Govt looked at as a simple tax collector



MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Service Contracts
The contractor is paid a fee for services.
Title to the petroleum stays with govt
These are mainly at the stage of production, after
discovery because then the risk is reduced

Production Sharing Agreements(2)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Production Sharing Agreements (PSAs)
Basic elements
The company is a contractor to host govt
Host govt and contractor share in all production
Title to the resource remains with government until the
point of sale
Govt maintains control of operations (usually through
a national oil company) either directly or through a
management committee
The contractor required to provide technology and
financing
Production Sharing Agreements (3)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
(PSAs) contd
Equipment purchased and imported by the contractor
become property of government
Exploration expenditures met by the contractor only
recoverable in case of a discovery
Company bears the entire exploration risk
Govt has option to participate and be carried through
development to production
Ring-fencing costs incurred in one contract area or field
cannot be recovered from production from another
contract area or field
Cost recovery or cost oil limit
Production Sharing Agreements (4)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t

Production Sharing Agreements (5)

(PSAs) contd
Profit oil and gas sharing revenues remaining after
royalty and cost recovery shared between government and
the contractor
The contractors share of profit oil and gas is taxed

27
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
28
Production Sharing Agreements (6)
Why we Chose PSA
Title to petroleum remains with Government
Govt has a say on production rates (very key), marketing
etc
Capacity to monitor the expenses had not been built
Secure early revenues to government through royalty and
cost recovery limit and therefore early share of profit

MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
The National Oil and Gas Policy (NOGP) is the
key document providing guidance to the Oil and
gas sector in Uganda.

It was developed to address issues of
exploration, development, production and
utilisation of the countrys oil resources following
the discovery of commercial oil reserves in 2006.

NOGP was approved by cabinet in January 2008
after a thorough consultative process.
29
THE NATIONAL OIL AND GAS POLICY
FOR UGANDA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Key Policy objectives for the oil and gas sector before the National Oil and Gas
Policy for Uganda were covered in the Energy Policy of 2002 and these 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.

The discovery and confirmation of commercial reserves of petroleum in the country
brought about new issues that necessitated putting in place a NATIONAL OIL AND
GAS POLICY for the country.
30
National Oil and Gas Policy for Uganda (2)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t

Policy Goal:
TO USE THE COUNTRYS OIL AND GAS RESOURCES TO
CONTRIBUTE TO EARLY ACHIEVEMENT OF POVERTY
ERADICATION AND CREATE LASTING VALUE TO SOCIETY.

Policy has ten objectives, each with strategies and actions.


Policy available in print and website;www.petroleum.go.ug

An abridged and translated version of the policy is being developed.


31
National Oil and Gas Policy for Uganda (3)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
1. Efficient Licensing Objective 1
On-going formulation of new petroleum legislation
Presentation of new petroleum legislation in parliament February 2012 (Petroleum
(Exploration, Development and Production) Bill 2012 and Petroleum (Refining, Gas
Processing and Conversion, Transportation and Storage) Bill).
Halt in licensing of new acreage since first discovery in 2008.
Over 10,000 km
2
out of 20,000 km
2
originally licensed area with high productive
potential has been relinquished in addition to available unlicensed areas. Over
16,000 km
2
is now available for licensing.
Over 80 applications received are kept in data bank.
Due diligence undertaken on these and some companies purchase data and reports
after signing confidentiality agreements
Gradual and Competitive licensing as a way of prolonging production and
efficient resource management.
Open Bidding Rounds will be the form of licensing
32
Status of Policy Implementation (2008 to 2012)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
2. Establish and Manage Countrys Resource Potential
Objective 2
Resources in 2006 were 300 million barrels of oil in place.
Today the resources are over 3.5 billion barrels of oil in
place and over 1.0 billion barrels are recoverable.
The National Petroleum Data Repository Systems are
under establishment.
Creation of new institutions (Petroleum Authority, National
Oil Company, Directorate of Petroleum)-once bills are
passed into law.
Strengthening existing institutions :


33
Status of Policy Implementation (2)
DATA REPOSITORY CENTRE
DATA REPOSITORY CENTRE
INHOUSE DATA INTERPRETATION
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
3. Efficient production Objective 3
No commercial production yet, but an extensive
Extended Well Testing (EWT) programme being
undertaken.

Issued a production licence for Kingfisher field
(February 2012) to be effective in one year.

Government has received:
Applications for production licences over
Waraga, Kingfisher, Nzizi and Mputa fields and
these are being reviewed.

Oil Companies are due to submit
Field development plans for Kasamene,
Wahrindi, Kigogole, Nsoga, Ngege and Ngara.



34
Status of Policy Implementation (3)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
35
Refinery Distribution in Africa (Source: CITAC)
Two strategies;
a) Early Commercialization Integrated Power Project
b) Refinery Development


Status of Policy Implementation (4)
4. Valuable utilisation of the resources Objective 4
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
36
Early Commercialization Integrated Power
Project
Value Addition and Integrated Power Project
Pre-FEED activities including geotechnical surveys
for infrastructure for the gas processing centre and
pipeline routes have been completed
Power Generation
Deliver natural gas as the initial feedstock to supply
a 50MW dual power station

Additional to gas, crude oil (HFO) from extended
well tests to increase capacity and life of the project
to 25 years

Potential industry markets for the test crude are
also being explored
Test Crude from:
Jobi, Rii, Ngiri
Test Crude from:
Kasamene, Nsoga, Ngege,
Kigogole, Wahrindi
Mputa
Waraga
Nzizi
KABALE POWER
PLANT
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
37

Refinery Distribution in Africa (Source: CITAC)
A Regional Refineries Development
Strategy (RRDS) was developed and
approved in 2008 by EAC member
states
The strategy aims at:
Harmonized planning and
development of refineries in the East
African Community
Sustainable utilisation of crude oil
resources in the region.
EAC has only one refinery of 70,000
bbl/d but operates at 35,000bbl/d.
The region is currently consuming
close to 200,000 bbl/d and demand is
growing

Refinery Development
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
38
Refinery Development (2)
Value Addition and Refinery Development
A detailed refinery feasibility study for the
development of a refinery in Uganda was
conducted in 2010/11 and assessed;
Crude production potential
National and Regional Petroleum Product
Demand
Refinery size and configuration
Location
Financing options
The study analysed the option of crude export pipeline
verses refinery development
Study confirmed that refinery development is more
economically feasible and beneficial than export of crude oil
Six different locations were assessed and Kabaale (29Km
2
),
close to the oil fields in Hoima district was recommended
based on the waxy crude type that is difficult to transport
over long distances
Feasibility Study for Refining (Source: MEMD)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Base case refinery of 60,000 bbl/d was recommended
Phased development to be considered starting with 20,000 bbl/day
Capacity to be expanded in future to 60,000 bpd and to 120,000 bpd or 180,000 bpd
NPV for base case 60,000 bbl/d US $ 3.2 billion, Post tax rate of return of 33%
Crude export pipeline tariff (60,000 bbl/d) at post tax ROR of 10% is US$ 13.35/bbl
Feasibility study is now available for purchase
Mild Hydrocracker / FCC / Coker and HCK/ Coker design options are being considered
Processes of Acquisition of land in Kabaale, Buseruka Subcounty, Hoima for refinery
development is on-going;
Survey of the land was undertaken by the Ministry of Lands Housing & Urban
development (MoLHUD)
Sensitisation of affected communities is on-going and preparation of the Resettlement
Action Plan.

Procurement of a Transaction Advisor for the Refinery on-going
39
Medium-large refinery
Refinery Development (2)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
40
REFINERY DEVELOPMENT STEPS
FEASIBILITY STUDY
COMMISSIONING
Land Acquisition
Logistics Assessment Study
Environmental Baseline Study
Identify Developer
FEED
Detailed EIA
EPC
2011
2015 (Expected commissioning of Phase-1)
Government to work with partners with
technical knowledge and required capital
through Private Public Partnership (PPP)
Refinery Development (3)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Benefits of Refining in Uganda
Reduce over reliance on foreign importation of petroleum
products
Help alleviate fuel shortages and facilitate regional
economic growth
Provide employment to local and national population esp.
at construction stage
Infrastructure development in the local areas e.g. Roads,
health centers

Refinery Development (4)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
5: Promotion of suitable transport and
storage solutions Objective 5

A petroleum transportation and storage study for the
country has commenced.
A study to evaluate development of pipelines and
storage facilities for crude oil and gas in Uganda
has been concluded.
Two routes; Northern and Southern to a central
hub/refinery - Northern (96 km, 16 inch) and
Southern (46 km, 12.75 inch)
The second part of the study will cover
transportation and storage of petroleum products
from the refinery to markets is ongoing and will be
completed this year.

Commencement of the construction of Kaiso-Tonya
Road and design of other roads is ongoing.

42
Status of Policy Implementation (5)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
6: Collection of the right revenues and utilisation to create lasting value Objective 6
Petroleum Revenue Management Policy in place.

Public Finance and Accountability Act (PFA) reviewed to put in place legislation for
petroleum revenue management; PF bill tabled in Parliament

Tax legislation updated and Macro-Economic Framework is being revisited.

Capacity Building in tax policy/ administration and Petroleum Fund Asset
Management.

Resolution of tax dispute on the sale of Heritage assets is an example of an effort to
ensure collection of right revenues

43
Status of Policy Implementation (6)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
7. Optimum National Participation Objective 7
Concluded a study on the opportunities and challenges for Ugandans participation in
the oil and gas sector in September 2011 and recommendations are under
implementation.

Copy of the study is on www.petroleum.go.ug

Oil companies are being compelled to employ Ugandans and give business
opportunities to Ugandan companies.

Several aspects of local content have been included in the petroleum resource bill.

44
Status of Policy Implementation (7)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
45
OPPORTUNITIES FOR THE COUNTRY
NATIONAL PARTICIPATION IN THE OIL AND
GAS SECTOR (1)
Production Sharing Agreements (PSAs) provide for State Participation in the
range of 15% to 20%






This provides an important opportunity to optimize value for the country in
the oil and gas activities by directly participating in, among others;
Decision Making
Controlling of Costs
Capacity Building in strategic ,managerial and technical roles of the industry



IOCs
80%
Government
(max)
20%
MAXIMUM RANGE OF STATE PARTICIPATION
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
46
NATIONAL ENTREPRENEURS
National Participation in the Oil and Gas
Sector (2)
SERVICES TYPE UGANDAN SUPPLIERS
CIVIL WORKS/
ENGINEERING

Kagga & Partners Tegeka Construction
Pearl Engineering Kasese Nail & Wood Ltd
Excel Construction Strategic Logistics
MEDICAL

Frontier Medical AON Uganda Ltd
Musalaba Mwekudu
CLEARING AND
FORWARDING

Bemuga Forwarders
Three ways shipping services Co.
Momentum Logistics
East Africa Cranes
Environment services
Amec Earth and Environment Services
Air water and Earth.
Environmental Assessment Consultants
RHK CONSULTING Engineering LTD
SECURITY

G4S security
Saracen
CATERING

Mineral Services Limited
Equator Catering services
Jose Catering
Mining Services Limited
National Entrepreneurs are actively involved in provision of
services in the sector. Examples;
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
National Participation in the Oil and Gas
Sector (3)
Well pad services Communications
1. Excel Construction Ltd
2. Kasese Nail & Wood LTD
3. Strategic Logistics
4. Pearl Engineering Limited
1. MTN Uganda Ltd
2. Orange Uganda Ltd
Environment services(Consultations) Rig Services( Movement and Mud logging)
Amec Earth and Environment Services
Air water and Earth.
Environmental Assessment Consultants
RHK CONSULTING Engineering LTD
1. Three ways
2. Multiline International

Freight Forwarders/Courier services Equipment lifting services
1. Bemuga Forwarders.
2. Momentum Logistics
3. Three ways Shipping services
1. East Africa Cranes Ltd
2. Bemuga Forwarders
Engineering services Office Facilities and Equipment
Kagga & Partners
Pearl Engineering
MBW Consultants
Excel construction
Tegeka Companies
Service and Computer Industries Ltd
Uganda Printing and Publishing
Uganda Railways Corporation
MSL Logistics
47
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
National Participation in the Oil and Gas
Sector (4)
Well pad services Communications
1. Excel Construction Ltd
2. Kasese Nail & Wood LTD
3. Strategic Logistics
4. Pearl Engineering Limited
1. MTN Uganda Ltd
2. Orange Uganda Ltd
Environment services(Consultations) Rig Services( Movement and Mud logging)
Amec Earth and Environment Services
Air water and Earth.
Environmental Assessment Consultants
RHK CONSULTING Engineering LTD
1. Three ways
2. Multiline International

Freight Forwarders/Courier services Equipment lifting services
1. Bemuga Forwarders.
2. Momentum Logistics
3. Three ways Shipping services
1. East Africa Cranes Ltd
2. Bemuga Forwarders
Engineering services Office Facilities and Equipment
Kagga & Partners
Pearl Engineering
MBW Consultants
Excel construction
Tegeka Companies
Service and Computer Industries Ltd
Uganda Printing and Publishing
Uganda Railways Corporation
MSL Logistics
48
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
49
EMPLOYMENT BY OIL COMPANIES
Licensed companies in the country
are employing an increasing
number of Ugandans
Tullow employees a total of 203
people out of which 80% are
Ugandans
CNOOC plans to employee 115
people out of which 70% are
Ugandans
Total plans to employ a total of 178
people out of which 60% are
expected to be Ugandans
These numbers are expected to
increase as more Ugandans
acquire skills in the oil and gas
sector.
National Participation in the Oil and Gas
Sector (5)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
50
INTERNATIONAL OIL SERVICES COMPANIES
Some of the worlds largest oil service companies now resident and
have opened bases and yards in the country;
Schlumberger; US$79.57 billion
Halliburton; US$24.64 billion
Baker Hughes; US$16.74 billion
Weatherford; US$8.91 billion
These service companies are also providing training and employment
opportunities to Ugandans



National Participation in the Oil and Gas
Sector (6)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Skills requirement study for the oil and gas in the country has
been planned and is due to be undertaken starting later this
year.

Commencement of Uganda Petroleum Institute Kigumba
artisans and technicians.
First intake of 28 students is due to graduate during 2012 and are
undergoing industrial training in Trinidad and Tobago
Second intake of 60 students commenced studies during 2011.

Undergraduate and post graduate studies in Petroleum
Geoscience at Makerere University.
The third intake of 80 students commenced studies in 2012/13
Second intake of 46 and first intake of 50 students commenced
studies in 2011/12 and 2010/11 respectively
51
Status of Policy Implementation (8)
Support to Makerere University by Schlumberger with US$ 4m for technical software, hardware and training
Private institutions introducing petroleum related courses.
Increased training of Ugandans in oil and gas professions abroad for both public and private players
8. Development and Maintenance of National Skills and Expertise - Objective 8
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
9. Environment Conservation Objective 9
Environment and Social Impact Assessment studies are undertaken for all activities in the
sector.

Environment Sensitivity Atlas for the areas where petroleum has been discovered in the
country was developed.

Strategic Environment Assessment of these areas is on-going.

Environment Monitoring Plan and guidelines have been developed.

Oil spill Contingency Plan and mechanism for hazardous waste management plan is on-
going.

Multi-Institutional monitoring team - Biodiversity Institutions working together to efficiently
manage the interface between petroleum and the environment.

Updating of standards, guidelines and regulations by biodiversity institutions

Land use planning is in progress. The Albertine Graben is a special planning area; Planning
of urban areas like Buliisa is in progress

52
Status of Policy Implementation (9)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
10. Mutually beneficial relationships among
stakeholders- Objective 10
A communication strategy for the sector was
developed and its Implementation is on-
going through;
1. Engagements with Civil Society, Parliament
and other stakeholder groups
2. Engagements with leaders and communities
of districts in the Albertine Graben
3. Participation in Radio and Television talk
shows
4. Pro-active Media Relations
5. Website www.petroleum.go.ug

Consultations and dialogue with
stakeholders continues.
53
Status of Policy Implementation (10)
Editors at Jobi-3 well site in Murchison Falls National Park in July 2012

MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Action (iii) of Objective 10 of the NOGP provides for putting in place a Communication
Strategy for the Oil and Gas Sector .

The objectives of the strategy are to;
a) Bring about communication leadership, and foster a coordinated approach to communication by multiple
actors.
b) Meet the information needs of the stakeholders through regular information dissemination, exchange and
sharing.
c) Promote an accurate and balanced image of the oil and gas sector through proactive communication.
d) Establish an implementation structure to synchronise internal communication within the MEMD, between
other government institutions active in the sector and other stakeholders.

Can be accessed on www.petroleum.go.ug

Provides for, among others, Specific Engagement with the Media; Training, Meetings,
field visits, Press conferences, Media Contact List, Designated a spokesperson, among
others:

54
COMMUNICATION STRATEGY
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
a) Engagements Organised;
Breakfast meeting for Senior Editors (40) on 31
st
August, 2011
Workshop for News/ Business Reporters (50) on 2
nd
September, 2011
Training Workshop for Parliamentary Reporters (65) on 28
th
November 2011
A breakfast meeting for Editors (50) and a Workshop for Journalists (65) were held on 28
th

March 2012 and 30
th
March 2012 respectively;
Improve awareness about the developments in the Oil and Gas Sector
Enhance communication flow between Government and media
Update the on the recent developments
b) Engagements Facilitated;
Various training workshops for journalists organised by the African Centre for Media Excellence
(ACME) held on 21st Nov, 2011, 30th January, 14th May, 21
st
August, 2012.
A training for reporters organised by UEJA on 28
th
October, 2011
A presentation made to the Senior Editorial Staff of the New Vision on 8th May 2012 with the
view to improve the reporting on oil and gas issues by their staff and also develop partnerships
with the experts and their organizations.
55
Communication Strategy (2)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
c) Media Visits to Operations in the Albertine Graben

1. Following an orientation Workshops for the Media, MEMD organised two visits to the Albertine Graben
for 25 journalists, which was undertaken between 19
th
to 22
nd
January 2012 and for 20 Editors and 5
journalists between 19
th
and 22
nd
July, 2012.

2. Facilitated a three field visits for journalists undergoing a training programme on oil and gas reporting
under ACME. The visits took place on 5
th
and 18th February, 2012, and 29
th
April, 2012.

d) Designated spokesperson for the Ministry
Mr. Bukenya Matovu, Senior Assistant Secretary/ MEMD has been delegated the responsibility of a being
the official spokesperson for the Ministry, including on oil and gas issues and is accessible to the media
for comment on various issues.

OBJECTIVES OF PROACTIVE MEDIA RELATIONS;
Improve awareness about the developments in the Oil and Gas Sector
Enhance communication flow between Government and media
Update the on the recent developments
Challenge of high staff turnover in the media mitigated organising and facilitating such engagements.
56
Communication Strategy (3)
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Appreciate the progress and achievements that have been made in the sector.

Oil and Gas Industry Characteristics (High Risk Industry, High Reward, Capital intensive, International
and has potential to disrupt other sectors and can also be easily disrupted) require responsible media to
avoid disruption of the sector and contribute to managing expectations.

Be proactive in reporting about the oil and gas sector and ensure objective coverage of the sector.

Seek the correct information from the right sources to avoid misrepresentations based on selfish
interests; Get the right mix between political debates and expert information; there is tendency to rely
more on politicians than experts for media stories.

Network with key actors in the sector and obtain information with them to the extent that does not offend
your professionalism in order to deploy reporters optimally and for key tasks. Key actors include MEMD,
Finance, Parliament, Oil companies, NEMA, UWA, URA etc.

Find space and airtime in your channels for the sector, even when there are no "fireworks" around the
sector to give people information. Oil stories make interesting reading/listening.

Work closely with the MEMD and PEPD Communications Office to ensure information flow.



57
EXPECTATIONS FROM THE MEDIA
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
CONCLUDING REMARKS (1)
58
The intensive promotional and exploration efforts to establish Ugandas petroleum potential were
successful as commercially exploitable reserves of oil and gas were confirmed in the country.
Investment in the sector was over US$1.3 billion at the end of 2011 and the resources discovered
in the country to date are now estimated to be about 3.5 billion barrels of oil in place.
Given the drilling success rate and cost of finding oil in the country so far the exploration effort has
been efficient.
Efforts are now being made to commercialize the discovered resources, initially through power
generation and subsequently through refining of the crude oil
Investment in the sector is expected to increase especially as preparation of the infrastructure
required for production is put in place.
Employment opportunities for Ugandans in the oil and gas sector will increase as the country
progresses into field development and production
MNSTRYOF ENERGYAND
MNERAL DEVELOPMENT
THE REPUBLIC OF UGANDA
MINISTRYOF ENERGYAND
MINERAL DEVELOPMENT
THEREPUBLICOF UGANDA
P e t r o l e u m E x p l o r a t i o n a n d P r o d u c t i o n D e p a r t me n t
Concluding Remarks (2)
59
The key challenges in the sector include the general publics anxiety and
expectation and the need to put in place an appropriate institutional and
regulatory framework for the sector.
These and other challenges in the sector are well identified and described in
the countrys oil and gas policy and therefore implementation of this policy
should go along way in addressing these challenges.

COMMISSIONER
Petroleum Exploration and Production Department
Ministry of Energy and Mineral Development
Email: pepdebb@petroleum.go.ug

60

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