Uganda Oil and Gas Exploration and Production Market Volumes and Forecast by Terrain, Assets and Major Companies, 2021-2025
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Uganda is currently in the process of trying to get its first oil and gas projects off the ground. As a landlocked country, all assets are onshore and based around the edges of Lake Albert on its western border with the Democratic Republic of the Congo. The first discoveries were made almost 15 years ago with the Kingfisher-1 well on the southern end of the lake followed by the Jobi-Rii discovery on the northern end of the lake in 2009 which was the largest basin discovery to date.
Uganda had its first licensing round in 2015 with 6 blocks offered and 2 licenses. Tullow who was the operator of the blocks for several years and made multiple discoveries of which is intended to farm down in 2017, after a long process this was denied, however, in 2020 it was agreed that Tullow would sell its full equity holdings in the projects to Total. The remaining partners Total and CNOOC were not able to come to a final investment decision in 2020 due to the impacts of COVID-19 and tighter budgets. The companies stayed eager to get the multibillion-dollar Tilenga and Kingfisher projects approved, and a decision was made on 9th April 2021 and the first oil is forecast to be 2025.
What are the market dynamics of Uganda’s exploration & production market?
Uganda’s oil and gas industry is looking promising as Total and partners agree on a way forward for the country’s flagship oil developments, following years of delays and disagreements between the parties involved. The development of Tilenga and Kingfisher will help the country unlock its major oil reserves and provide key infrastructure for other developments in the region.
Production from the two major developments (Kingfisher and Tilenga) is forecasted to begin in 2025 after the final investment decision (FID) was made in April 2021 and provided no major obstacles are met during the construction and commissioning phases. The major obstacle to progressing the development and what held up negotiations between the government authorities and the participants was the crucial East Africa Oil Pipeline (EACOP) and its proposed route. In September 2020, a significant hurdle was jumped as a host government agreement was signed between Uganda and Tanzania where the pipeline would pass through for the $3.5 billion projects. Should these developments come online in 2025, peak production would be reached by 2028 for the country, producing 230,000 barrels of crude oil per day, with 190,000 bd coming from the Total operated Tilenga and 40,000 from the smaller, CNOOC operated Kingfisher. With this production, Uganda will become the regions’ eighth-largest oil producer by 2025. Along with the oil, there is some associated gas that will primarily be used for power generation, the Ugandan government has made legal restrictions on flaring, although some amount may be flared or vented in order to maintain operational safety.
There have been no recent contracts awarded in the country, although the partners are planning to tender agreements for the pipeline. By the end of 2021, the tender will most likely be due. In 2020, the partners issued a call for interest for engineering, procurement, and construction (EPC) work on the fields, which included well pads, a central processing facility (CPF), and a water abstraction pipeline. In addition, there has been little to no exploration activity in Uganda for the last 5 years or so as most of the activity was conducted pre-2014. There were 16 discoveries in the country from 2003 to 2012 however little exploration activity has taken place since. The major discoveries made in Uganda are all around Lake Albert and include the fields for the Tilenga development, the Kaiso-Tonya fields, and Kingfisher. Tilenga, the largest of the three developments (864 mmbbls crude oil) includes 7 fields discovered between 2008 and 2011 including Gunya, Jobi, Rii, Kasamene, Ngiri, Nsoga, and Wharindi. The largest of which is Jobi-Rii and was the largest basin discovery to date, successful appraisal wells confirmed oil in two zones and totaled 15 meters of net pay oil and 5 meters of net pay gas.
What are the key categories of Uganda’s crude oil and natural gas production?
Uganda’s crude oil and natural gas production is categorized by onshore only. The major assets in Uganda’s crude oil and condensate production include Kingfisher and Tilenga.
Uganda exploration & production market, by segment
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Which are the key players in Uganda’s exploration & production market?
The key companies in Uganda’s crude oil and condensate production sector include China National Offshore Oil Corp, Total SE, Uganda National Oil Co. Therefore, the Total SE is expected to grow during the forecast period.
Uganda exploration & production market, by key players
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Market report scope
Type category | Onshore |
Key Players | China National Offshore Oil Corp, Total SE, Uganda National Oil Co |
Scope
This report provides an overview of the Uganda exploration & production market. The report includes:
- Key details of active and upcoming oil and gas assets in the country.
- Recently licensed blocks details, licensed blocks count by company, and latest discoveries.
- Latest mergers and acquisitions, and awarded contracts related to the E&P sector in the country.
Reasons to Buy
- Gain a strong understanding of Uganda’s E&P sector.
- Facilitate decision-making based on strong historical and outlook of oil and gas production data, licensed blocks details, and discoveries.
- Assess your competitor’s production outlook and licensed blocks count in the country.
- Analyze the latest M&A landscape and awarded contracts related to the country’s E&P sector.
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Frequently asked questions
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What are the key categories of Uganda’s crude oil and natural gas production?
Uganda’s crude oil and natural gas production is categorized by onshore only.
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Which are the major players in the Uganda exploration & production market?
The key companies in Uganda’s exploration & production market are China National Offshore Oil Corp, Total SE, Uganda National Oil Co. Therefore, the Total SE is expected to grow during the forecast period.
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