This archive report was first published on 8 June 2020.
Uganda's Ministry of Energy and Mineral Development has pushed back the licensing round for five new oil blocks in the Albertine Graben to September 30, 2020, following low interest from exploration companies.
According to Robert Kasande, the permanent secretary at the ministry, six companies had submitted expressions of interest proposals, but there were no detailed bids for the advertised oil blocks by the end of March 2020 as expected.
The postponement will likely affect the scheduled opening of bids and award of licences, both private and government officials have warned.
“The six were yet to submit their detailed proposals. Once we get all the bids in by September 30, we hope to award the licences by end of this year but more likely in January next year,” Mr Kasande said.
He attributed the low interest to the Covid-19 pandemic, which has shrunk economic activity, curtailed air travel, and led to the global collapse of crude oil prices.
Uganda launched its second licensing round for five blocks in the oil-rich Albertine Graben during the East African Petroleum Conference and Exhibition in Mombasa in May last year.
Initially, the government had set a September 30, 2019 deadline for bids, but with no interest registered, the deadline was extended to end of March this year.
The second licensing round comprises of five blocks, including Block 01 (Avivi) covering 1,026 square kilometres, Block 02 (Omuka) covering 750 square kilometres, Block 03 (Kasuruban) which covers 1,285 square kilometres, Block 04 (Turaco) that covers 637 square kilometres, and Block 05 (Ngaji) covering 1,230 square kilometres.
