Uganda plans to award production licences for six blocks to Tullow Oil and Total E&P Uganda before the end of June, the country’s state minister for minerals to be, Peter Lokeris (photo), revealed.“Everything is set. Before the end of the month, we shall issue licences for six blocks. At the moment, I cannot divulge more details but just know that Tullow Oil and Total E&P will be those we shall sign agreement with,” he said.

According to Lokeris, a total of 120 exploration and appraisal wells have been drilled in the country and so far prospectors have encountered petroleum in 106 wells in the subsurface.

“This represents a drilling success rate of 88 per cent, which is the highest worldwide. It is estimated that the in-place volume of petroleum in the country to-date is more than 6.5bn barrels of oil equivalent. These resources are sufficient to support commercial oil production in the country. It is important to note that the investment in seismic surveys, exploration and appraisal drilling increased from US$50mn in 2006, to US$3.2bn by the end of 2015, and is projected to go over $3.4bn mark in 2016,” he added.

A data from the Ministry of Energy and Mineral Development has revealed that the next stage of exploration in the country is expected to take place within the next four to five years and anticipated attract more investment of about $20bn, Oil review Africa reports.

Anita Fatunji