Uganda oil joint venture partners statement on production license approval

The Minister of Energy and Mineral Development on 30 August 2016 granted eight Petroleum Production Licences over oil fields in Exploration Area 2 (EA2) and Exploration Area 1 (EAI) respectively. Five Petroleum Production Ljcences have been granted to Tullow Uganda Operations Pty Limited (Tullow), the operator for EA2, and three Petroleum Production Licences have been granted to Total E&P Uganda B.V. (TOTAL) the operator of EAI. Grant of these licences follows conclusion of the evaluation of the Applications for Production Licences over these fields earlier submitted by the two companies respectively.

Tullow and Total applied as operators of the two respective exploration areas which they both share equally with CNOOC Uganda Ltd (CNOOC). The application and evaluation processes before grant of these production licences were undertaken in pursuance of one of the objectives of the National Oil and Gas Policy for Uganda which is “to ensure efficient production of the country’s oil and gas resources”. These processes are provided for under Sections 69-74 of the Petroleum (Exploration, Development and Production) Act, 2013 and the Minister, granted the licences in exercise of her powers under Section 75 of the Act.

Below is statement from the joint venture partners on the approval.