Uganda signs oil exploration deal with unit of Australia's DGR Global

DGR Global

12/05/2023 11:34

KAMPALA, May 12 (Reuters) - Uganda signed a
production-sharing agreement (PSA) with a unit of Australian
firm DGR Global  DGR.AX  on Friday for exploration of oil in its
west.
    DGR Energy Turaco Uganda Limited will explore in the Turaco
block, a swathe of 637 sq km (246 sq miles) in the Albertine
Rift basin that straddles the African nation's border with the
Democratic Republic of Congo. 
    Turaco was one of five blocks put up for auction in Uganda's
second licensing round launched in 2019. 
    "This licence marks a significant milestone for the
competitive second licensing round," Energy Minister Ruth
Nankabirwa said in the capital, Kampala. 
    Implementation of the round had been delayed by the COVID-19
pandemic as travel curbs affected the bidding and negotiation
stages, she added.
    The deal gives DGR Energy four years of exploration. 
    Uganda discovered commercial hydrocarbon deposits in 2006
and reserves are estimated at 6.5 billion barrels.
    All the existing development fields are owned by France's
TotalEnergies  TTEF.PA , China's CNOOC  0883.HK  and Uganda
National Oil Company (UNOC).  
    Commercial production is expected to commence in early 2025.
    Armour Energy Uganda Ltd, another unit of DGR Global, got a
two-year extension of its licence for the Kanywataba exploration
area on Friday. It has been exploring there since 2017.  

 (Reporting by Elias Biryabarema; Editing by Bhargav Acharya and
Clarence Fernandez)
 ((Email:elias.biryabarema@thomsonreuters.com; Tel. +254 20 499
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