developments in uganda’s oil and gas sector and opportunities for investment
DESCRIPTION
DEVELOPMENTS IN UGANDA’S OIL AND GAS SECTOR AND OPPORTUNITIES FOR INVESTMENT. A Presentation to the First UK- Uganda Investment Forum2010 15 th September, 2010 Congress Centre, London. F. A. Kabagambe-Kaliisa PERMANENT SECRETARY, Ministry of Energy and Mineral Development - PowerPoint PPT PresentationTRANSCRIPT
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DEVELOPMENTS IN UGANDA’S OIL DEVELOPMENTS IN UGANDA’S OIL AND GAS SECTOR AND AND GAS SECTOR AND
OPPORTUNITIES FOR INVESTMENTOPPORTUNITIES FOR INVESTMENT
F. A. Kabagambe-Kaliisa
PERMANENT SECRETARY,
Ministry of Energy and Mineral Development
Email: [email protected]
Website: www.energyandminerals.go.ug
A Presentation to the A Presentation to the
First UK- Uganda Investment Forum2010First UK- Uganda Investment Forum2010
1515thth September, 2010 September, 2010
Congress Centre, LondonCongress Centre, London
Petroleum Exploration and Production Department
1. Introduction The Albertine Graben History of Petroleum Exploration
2. Recent Developments in the Upstream Oil and Gas Sector
Status of Licensing Data acquired Resource Potential Oil and gas discoveries Current Status
3. The National Oil and Gas Policy for Uganda
4. Status of Investment in the Sector and Opportunities
6. Conclusion2
PRESENTATION OUTLINE
Petroleum Exploration and Production Department
Albertine Graben:
Northern most part of the Western arm of the East African Rift System
Runs along Uganda’s western border with DRC
Tertiary basin, 500 km long, averaging 45 km wide and 23,000 sq km in Uganda
1200 km from the coast
Abu Graben
Abu Graben
Afa
r D
epre
ssio
n
Afa
r D
epre
ssio
n
Aswa Shear zone
Aswa Shear zone
Lake Malawi
Lake Tanganyika
Lake Albert
Alb
ertin
e G
rabe
n
Alb
ertin
e G
rabe
n
Eastern ArmEastern Arm
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LIBYA
NIGERIA
3
1. INTRODUCTION (1)
Petroleum Exploration and Production Department4
History of Petroleum Exploration in UgandaHistory of Petroleum Exploration in Uganda
1920 – 1940 Early Efforts Oil Seepages reported 1925 Drilling of Waki B1 well in
1938 by Anglo European Investment Company of South Africa.
Some Shallow wells drilled in Kibiro and Kibuku areas.
1. INTRODUCTION (2)
Petroleum Exploration and Production Department5
1940 – 1983: No Activity World war II Colonial policy Political uncertainties
1983 – To-Date: Revival Period 1983 Acquisition of
Aeromagnetic Data over the entire Albertine Graben Indication of three main
depocentres conducive forpetroleum generation
50000 0 50000 100000
metre
REDUCED TO THE POLE
TOTAL MAGNETIC FIELD
1983/84
LEGEND
Water
Roads
NationalBoundary
BoundaryExpl. Areas
SUDAN
UGANDA
-141.2 -85.8 -74.3 -64.3 -52.3 -38.2 -22.6 2.4 57.5nT
150000S
100000S
50000S
050000N
100000N
150000N
200000N
250000N
300000N
350000N
400000N
450000N
150000S100000S
3300000E 3350000E 3400000E 3450000E 3500000E 3550000E 3600000E
3300000E 3350000E 3400000E 3450000E 3500000E 3550000E 3600000E
L. GEORGE
L. EDWARD
MBARARA
KASESE
MUBENDEFORT PORTAL
HOIMA
MASINDI
PARAA
NEBBI
ARUA
MOYO
To Masaka
To Kampala
To Masaka
To Kampala
To Kampala
To Gulu
Towns
EA1EA1
EA2EA2
EA3EA3
1. INTRODUCTION (3)
Petroleum Exploration and Production Department
Revival Period: Key Highlights
1985: Enactment of the Petroleum Act 1991: Formation of PEPD and commencement of ground
geological and geophysical data acquisition 1993: Formulation of the Petroleum Exploration and Production
Regulations 1997: Licensing of Heritage, subsequent acquisition of 2D seismic data
in 1998 and drilling of Turaco wells in 2002 – 2004 2001- 2006: Licensing of Hardman(now Tullow) in EA2, Heritage in
EAs1&3A, Neptune in EA 5. 2006: First oil discovery in Uganda made by Hardman Resources, the
Mputa discovery 2007: Licensing of Dominion in EA 4B 2008: Formulation of the National Oil and Gas Policy 2010: Oil and/or gas discoveries made totalling to 17. Appraisal program
ongoing and exploration continuing
1. INTRODUCTION (4)
Petroleum Exploration and Production Department7
• Albertine Graben sub divided into 11 Exploration Areas
• 5 Active Production Sharing Agreements (PSA)
• 4 Licensed Operators
2.1 Status of Licensing2.1 Status of Licensing
2. RECENT DEVELOPMENTS IN THE SECTOR (1)
Petroleum Exploration and Production Department8
2.2 Data Acquisition2.2 Data Acquisition
a) Geological mapping
Over 10,000 sq. km geologically mapped for petroleum exploration
&-
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%
&-
ARU
GULU
ARUA
MOYO
HOIMA
MASAKA
KASESE
MAHAGI
NIMULE
ISHASHA
BUSENYI
MUBENDE
MASINDI
MBARARA
NTUNGAMURUKUNGIRI
FORT PORTAL
LEGEND
Rift valey sediments: soils and marines
Pleistocene volcanic rocks
Ecca series shales (Karro)
Mityana Series
Singo series: conglomerates, sandstone & subordinate shale
Bunyoro series & Kyoga series: Shales, arkoses & quartzites
Kibalian System(presumed): Amphibolites.
Madi series: shists, quartzites marbles and gneisses
Karagwe-Ankolean system
Buganda-Toro system
Mirian gneisses: flaggy gneisses, affected by the mirian tectonism in W. Nile
Granites
Undifferentiated Gneisses
Banded gneiss of Aruan tectonic age in West Nile
Granites
Cataclastites
Volcanic bodies interpreted from aeromagnetic data
Lake
International boundary
Depth to basement contours in 1000's m.
Railway
Major Road
Faults
River
&- Oil seeps
% Waki-1 well
"S Town
±
0
1 N
2 N
3 N
4 N
30 E 31 E 32 E
2. RECENT DEVELOPMENTS IN THE SECTOR (2)
Petroleum Exploration and Production Department9
7,500 line km of gravity and magnetic data.
9,578 line km of aeromagnetic data
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!
!
!
UGANDA
J obi-1Rii-1
Ngiri-1
K igogole-1
Karuka-1
Taitai-1
Kasamene-1Ngege-1
31°50'0"E
31°50'0"E
31°40'0"E
31°40'0"E
31°30'0"E
31°30'0"E
31°20'0"E
31°20'0"E
31°10'0"E
31°10'0"E
31°0'0"E
31°0'0"E
2°20'0"N 2°20'0"N
2°10'0"N 2°10'0"N
2°0'0"N 2°0'0"N
1°50'0"N 1°50'0"N
µLegend
! Oil WellInternational Boundary
Copyright: Petroleum Exploration and Production DepartmentDate: January,09
Arc_1960_UTM_Zone_36NProjection: Transverse_MercatorFalse_Easting: 500000.000000False_Northing: 0.000000Central_Meridian: 33.000000Scale_Factor: 0.999600Latitude_Of_Origin: 0.000000Linear Unit: Meter
GCS_Arc_1960Datum: D_Arc_1960
b) Gravity and Magnetic data
Petroleum Exploration and Production Department10
5,774 line km of 2D seismic data• 2,406 km on Lake• 3,368 km on land
1,232.3 sq. km of 3D seismic data Energy source are; Dynamite, weight
drop and airguns
c) Seismic data
2. RECENT DEVELOPMENTS IN THE SECTOR (4)
Petroleum Exploration and Production Department11
44 Wells drilled• 26 Exploration
Wells
• 18 Appraisal Wells
Todate, All wells have encountered oil and/or gas except four
d) Well data
1
Exploration Drilling Trends in East Africa
2. RECENT DEVELOPMENTS IN THE SECTOR (5)
Petroleum Exploration and Production Department
Over 2 billion barrels of Oil equivalent in place.
30% of Albertine Graben has been explored.
17 oil and/gas discoveries made.
More than 50 prospects have been identified.
numerous leads to be followed up with seismic data.
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2.3 Resource Potential2.3 Resource Potential
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Jobi-North
CrocodileMpyo
Buffalo Jobi
Giraffe RiiHartebeest
Pura
WarthogNgiri
EA 1
Kasamene
Wairindi Ngege
Kigogole
Karuka
Waraga
Mputa
Nsoga
Taitai
Ngassa
Nzizi
Leopard
Kisinja
Ntera
NgaraEA2
Pelican
Pelican West
Crane
Kingfisher
Turaco
Saddle Bill
Coucal
EA3A
Ngaji
Mpundu
Nkobe
ItiSambia
EA 5
EA-3C
EA-4B
130000
130000
190000
190000
250000
250000
310000
310000
370000
370000
-400
00
-400
00
4000
0
4000
0
1200
00
1200
00
2000
00
2000
00
2800
00
2800
00
4
Legend
Exploration boundary
Wells
HydroCarbons
ª Dry Well
+ Gas Shows
* Gas Well
µ Oil Shows
! Oil Well
0 Oil and Gas Shows
1 Oil and Gas Well
Prospects,Leads,Discoveries
TYPELead
Oil Discovery
Oil and Gas Discovery
Prospect
International boundary
Lake
0 25 50 75 10012.5Kilometers
2. RECENT DEVELOPMENTS IN THE SECTOR (6)
Petroleum Exploration and Production Department13
Nzizi-2 well tested 14mm scf/d of clean dry methane Mputa-1: 33.3 API flowed 1,035 bopd.
Waraga-1: 33.80 API , flowed 12,050 bopd
Four discoveries namely Mputa, Kajubirizi (Kingfisher), Kasamene and Nzizi at Field Development Stage.
These fields (Mputa, Kajubirizi & Kasamene) hold in excess of 700 million barrels recoverable reserves
Type of crude is 30-34 API low sulphur, waxy crude, Pour point of ~40 degrees Celsius.
Kingfisher: 33 API , flowed 14,000 bopd.
2.4 Discoveries2.4 Discoveries
2. RECENT DEVELOPMENTS IN THE SECTOR (7)
Petroleum Exploration and Production Department
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Exploration
• Exploration continues in Exploration Areas 1, 4B and 5
• Appraisal is being undertaken on the discoveries made in
Exploration Areas 1 and 2
Development
• Exploration Areas 2 and 3A are at the development stage
• Draft Field Development Plans have been submitted for
Kingfisher, Kasamene and Nzizi discoveries
CURRENT STATUSCURRENT STATUS
2. RECENT DEVELOPMENTS IN THE SECTOR (8)
Petroleum Exploration and Production Department
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DEVELOPMENT: Integrated Power Project (IPP)
The gas to power
concept delivers gas
from Nzizi discovery to
fuel a 50MW power
plant, supplemented by
test crude from EWT
2. RECENT DEVELOPMENTS IN THE SECTOR (9)
Petroleum Exploration and Production Department
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DEVELOPMENT: Extended Well Testing (EWT)
Longer testing operations allows for
larger area of investigation.
Improved understanding of STOIIP
Testing without flaring
Enabler for testing in sensitive
environments and close to communities
Establishes early production experience:
Essential input into overall development
Transportation schemes. Essential for
Production Infrastructure
2. RECENT DEVELOPMENTS IN THE SECTOR (10)
Petroleum Exploration and Production Department
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DEVELOPMENT: Basin wide Development
Central Hub being considered
Loading Hub to refinery and to the Market
Source: Draft report of feasibility study on in-country refining
2. RECENT DEVELOPMENTS IN THE SECTOR (11)
Petroleum Exploration and Production Department
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DEVELOPMENT: Value Addition through Refining
Feasibility study for refining in the Country undertaken.
Report being discussed
Recommends location, size, configuration financing options and market for the products
2. RECENT DEVELOPMENTS IN THE SECTOR (12)
Petroleum Exploration and Production Department
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3.1 Energy Policy3.1 Energy Policy
Key Policy objectives from the mid 1980s were covered in the Energy Policy and 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.
3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (1)
Petroleum Exploration and Production Department
1. Institutional Development2. Size of Reserves3. Oil and Gas Revenue Management4. Impact of Oil and Gas Activities5. Contribution of Oil and Gas Resources to the Energy Mix6. Investment Promotion7. National Participation8. Public Anxiety and Expectations
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3.2 Issues3.2 Issues
Confirmation of commercially exploitable quantities of oil and gas raises the following key issues:
3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (2)
Petroleum Exploration and Production Department
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To deal with the emerging issues, a new policy, the National Oil and Gas Policy for Uganda has been put in place.
The Policy was formulated through a wide consultative process and approved by Cabinet Feb 2008
The goal of the policy is; ‘to use the country’s oil and gas resources to contribute to early achievement of poverty eradication and create lasting value to society’
3.3 Guiding Principles3.3 Guiding Principles
1. Using finite resources to create lasting benefit to society. 2. Efficient resource management.3. Transparency and accountability.4. Competitiveness and productivity.5. Protection of environment and conservation of biodiversity.6. Spirit of co-operation.7. Capacity and institution building.
3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (3)
Petroleum Exploration and Production Department
3.4 Implementation of Policy has commenced;3.4 Implementation of Policy has commenced; Drafting of new petroleum legislation to operationalise policy. Support for the introduction of training courses focusing on petroleum
industry done. BSc Petroleum Geoscience at Makerere, Artisan and technical training at Uganda Petroleum Institute, Kigumba.
Studies undertaken on refining in Uganda. Communication Strategy for oil and gas is being developed. Close monitoring of environment and biodiversity being undertaken. New institutions are being put in place. Local content study being undertaken to ensure optimum national
participation in oil and gas activities.
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3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (4)
Petroleum Exploration and Production Department
INVESTMENTSDATA TYPE 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
Investments (US$ Million)
3 0.2 0.25 4 5 15 20 12 50 150 250 436
Over US$900m invested in seismic and drilling of wells since 1998.
Bigger investments required to appraise and develop discovered oil and gas fields as well as infrastructure for transportation and refining.
Investments will require developing and ensuring a conducive environment for sustaining the required levels of investment.
4. STATUS OF INVESTMENT IN THE SECTOR (1)
Petroleum Exploration and Production Department24
4. STATUS OF INVESTMENT IN THE SECTOR (2)
Petroleum Exploration and Production Department
Participation in licenses for the new and relinquished acreages after formulation of new legislation.
Joint Ventures and farm in arrangements in existing licences.
Capital for the emerging infrastructure such as refining and transportation of petroleum commodities and products
Service provision and contracts in the fields of Engineering, Procurement, Construction, Environmental consultancy, etc, for the upstream and midstream facilities.
Power generation by Independent Power Producers.
5. INVESTMENT OPPORTUNITIES IN THE OIL AND GAS SECTOR
Petroleum Exploration and Production Department
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1. Petroleum exploration in Uganda has been ongoing since early 1920s.
2. Commercially Exploitable Reserves of oil have now been confirmed in Uganda.
3. Government has put in place a policy to guide development of the sector.
4. Implementation of Policy has commenced;
5. The oil industry in Uganda has potential of providing a lot of investment opportunities to oil companies and other investors in the industry.
6. CONCLUSION
Petroleum Exploration and Production Department27
Petroleum Exploration and Production Department28