The oil ministry of Uganda has renewed Oranto Petroleum Limited, a Nigerian firm, an oil exploration licence for two blocks in the western part of the country for an additional two years.
The licence extension, which covers the Ngassa Deep and Ngassa Shallow exploration areas, will allow the firm to conduct both exploration and appraisal drilling activity, the ministry said in a statement released late on Friday.
Uganda discovered commercial oil deposits in its Albertine Graben basin along its border with the Democratic Republic of Congo in 2006 and aims to commence production in 2025.
The country’s two development fields, Kingfisher and Tilenga, are jointly owned by France’s TotalEnergies TTEF.PA, China’s CNOOC 0883.HK, and Uganda’s state-owned Uganda National Oil Company (UNOC).
Environmental groups and climate change activists have criticised Uganda’s efforts to develop its oil resources, saying they will soil fragile eco-systems, displace people, and ruin livelihoods.
Energy Minister Ruth Nankabirwa rejected the criticism and said Uganda was “committed to responsibly developing our oil and gas resources.”
“Proceeds from petroleum resources will be channelled into supporting Uganda’s efforts to achieve its energy transition plan,” Nankabirwa added in the statement.
Since 2017, Oranto Petroleum Limited has possessed the licences for the blocks.
