Armour Energy in Uganda deal

Armour Energy signed the first exploration deal under Uganda’s 2015 protracted licensing round, international media reported on Thursday.

The PSA covers the Kanywataba block, which Total, China National Offshore Oil Corporation and Tullow Oil relinquished in 2012 after exploring it unsuccessfully, Reuters reported.

“The exploration and development of oil in Uganda is a very exciting opportunity for us,” Armour CEO Roger Cressey told reporters after receiving the licence, which is valid for four years.

Of the 19 companies that participated in Uganda’s 2015 round, in which six blocks were offered, Armour and three Nigerian firms were announced winners. Volatile oil prices resulted in “protracted negotiations” with the companies, energy minister Irene Muloni told Reuters.

A separate deal with one of the other winning firms, Oranto Petroleum International, is expected to be signed in about three weeks, the report added.