Uganda extends the licence for two oil and gas blocks

Uganda has extended the exploration licence of two oil and gas blocks to Nigerian independent Oranto Petroleum for two years, Reuters reported on Friday.

The Ngassa Shallow and Ngassa Deep concessions are located in the shallow and deep areas of the 410-square-kilometre Ngassa area near the western border of Uganda that predominantly covers Lake Albert.

The extension will allow the company to perform exploration and appraisal drilling activities.

“This extension is very important, as it will contribute towards increasing Uganda’s oil volumes,” said Arthur Eze, chairman of Oranto Petroleum.

“We appreciate the extension and want to assure the ministry that we will fulfil the work programme as planned within the designated period.”

Two onshore wells have been drilled at the Ngassa play on the Albertine Graben basin between 2007 and 2009 to access oil and gas finds under the lake.

Uganda discovered oil deposits at the basin in 2006 and plans to begin commercial production in 2025.

Oranto Petroleum became operator of the licences in 2017.