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Uganda Inks Oil Exploration Deal with Australian Company, DGR Global

Uganda Oil Exploration

Uganda’s oil exploration prospects got a major boost after securing a deal with DGR Global Limited, an Australian firm.

The government of Uganda allowed a unit of Global Limited for exploration of oil in its west after signing of the production-sharing agreement (PSA).

Ruth Nankabirwa, Energy Minister of Uganda stated that the company will get a four-year period of exploration permit.

In addition, it will operate in the Albertine Rift basin that straddles the African nation’s border with the DRC.

“This license marks a significant milestone for the competitive second licensing round,” said Nankabirwa.

Further, she revealed that the partnership talks stalled following the pandemic outbreak the stringent travel restrictions.

Uganda Oil Exploration Journey

In addition, Turaco was one of five blocks the government put up for auction in Uganda’s second licensing round launched in 2019.

Uganda discovered commercial hydrocarbon deposits 17 years ago and reserves are estimated at 6.5 billion barrels.

Following the Final Investment Decision, the commencement of field development, and the arrival of the rigs in 2022, commercial production is expected to start in 2025.

The joint venture partners, TotalEnergies, China National Offshore Oil Corporation (CNOOC), and Uganda National Oil Company (UNOC), announced a final investment decision (FID) in February 2022.

Armour Energy, a subsidiary of DGR Global, got a two-year extension of its license for the Kanywataba exploration.

Notably, the oil and gas exploration company has been exploring in Uganda since 2017.

DGR Global Limited is provides services and support to sponsored listed companies, within the mineral resources industry.

According to the US Embassy in Uganda, Western Uganda has approximately 6.5 billion barrels of oil reserves, with at least 1.4 billion estimated to be economically recoverable.

Firms with export licenses include French firm Total, S.A., China National Offshore Oil Corporation (CNOOC), and U.K. firm Tullow.

Africa is home to 25 per cent of the world’s population, accounting for between 3-5 percent of direct Foreign Direct Investment (FDI).