Uganda has launched a second round of competitive bidding for five oil exploration blocks in the west of the country, where it has already discovered commercial crude reserves, the energy ministry said.
In a statement posted on its Facebook page, the ministry said a total of 4,928 sq km would be offered in the new round.
Energy Minister Irene Muloni, speaking at an oil conference in Kenya's seaport town of Mombasa on May 8, invited investors to take up the blocks, the statement said.
She said many exploration companies were expected to show interest in the blocks, with the current relatively high price of crude oil making an investment attractive.
Uganda launched its first oil block auction in 2015, covering six exploration areas measuring 2,674 sq km. Prior to that, the country handed out blocks on a first-come, first-served basis.
Two of the firms that participated in the first round, Australia’s Armour Energy Ltd., and Nigeria's Oranto Petroleum Ltd., went on to sign production sharing agreements with the government.
The statement said the ministry would invite interested firms and consortia to submit applications within a period of six months after the announcement of the round.
"The licensing round is expected to be concluded with the award of Petroleum Exploration Licenses to successful firms by December 2020." the statement said.
Uganda first discovered oil in 2006 in the Albertine rift basin which straddles its border with the Democratic Republic of Congo.
Government geologists have said crude reserves of 6 billion barrels have been confirmed with 1.4 billion barrels recoverable.
China's CNOOC Ltd., France's Total SA and the UK's Tullow Oil Plc jointly own the existing fields but commercial production has been repeatedly delayed and is currently seen starting only in 2022.
Uganda, which is landlocked, has signed an agreement with Tanzania for a crude export pipeline which will terminate at Tanzania's Indian Ocean seaport of Tanga.
Recommended Reading
Schlumberger Tops Estimates On Higher International Drilling Activity
Schlumberger outlined an aggressive cost-cutting plan for its North American operations as the world's largest oilfield service firm contends with sharp declines in U.S. shale activity.
BW Offshore Sets Date For $800 Million E&P Spinoff
BW Offshore, a service provider to many petroleum producers, has in recent years built up its own E&P operations through BW Energy, which it plans to spin off first-quarter 2020.
EQT To Take Up To $1.8 Billion Charge Due To Low Gas Prices
U.S. natural gas producer EQT Corp. said Jan. 13 it would take a non-cash impairment charge of up to $1.8 billion in the fourth quarter driven by record low gas prices.