Uganda agrees oil exploration deals with two firms including Australia's DGR Global

DGR Global

12/01/2023 11:55

KAMPALA, Jan 12 (Reuters) - Uganda's cabinet has agreed
for the energy ministry to sign production-sharing agreements
(PSA) for two oil exploration blocks with two oil firms,
including a unit of Australia's DGR Global  DGR.AX , the
government said on Thursday. 
    A cabinet meeting on Monday had approved the signing of an
agreement with DGR Energy Turaco Uganda Limited, owned by
Australia's DGR Global, for the Turaco exploration area,
according to a statement issued by Godfrey Kabbyanga, a junior
information minister.   
     The 637-square kilometre exploration area is located in
Uganda's Albertine Rift basin near the border with Congo. A
different unit of DGR Global already owns an exploration
property in the area, Kanywataba, which it acquired in 2017. 
    The second deal is for Uganda's state-owned Uganda National
Oil Company (UNOC), and covers the Kasuruban exploration area
that stretches over 1,285 square kilometres, according to the
statement.
    Uganda first discovered commercial reserves of crude oil in
the Albertine Rift basin in 2006 and officials say first oil
will be pumped out of the ground in 2025. 
    The two exploration areas were part of five blocks Uganda
auctioned in a licensing round launched in 2019. 
    The firms will initially get two-year exploration licences
for the blocks, the statement said.  
 (Reporting by Elias Biryabarema;Editing by Elaine Hardcastle)
 ((Email:elias.biryabarema@thomsonreuters.com; Tel. +254 20 499
1232; Reuters Messaging:
elias.biryabarema.thomsonreuters.com@reuters.net))