The goal is to attract more investment in the country’s oil and gas sector, which has been a key focus of economic growth since crude oil was discovered in the Albertine Graben basin nearly 20 years ago.
Ruth Nankabirwa, Uganda’s Minister of Energy and Mineral Development, announced that new exploration areas have been identified.
Uganda’s oil reserves are estimated at 6.5 billion barrels, with 1.4 billion barrels recoverable. The government sees this as a chance to create jobs and generate revenue that can boost the economy.
The upcoming licensing round is considered a critical step in achieving Uganda’s oil ambitions, especially as the country prepares to start commercial oil production later this year.
Uganda has faced delays in starting oil production, but progress is being made with projects like the Kingfisher and Tilenga oil fields in the Lake Albert Basin.
Drilling has already begun, and these projects are expected to lay the foundation for the country’s oil industry. Key infrastructure projects, such as the East African Crude Oil Pipeline, are also in progress to transport Uganda’s oil to international markets.
While the government is hopeful about the benefits of oil exploration, concerns about the environmental impact remain. Oil extraction can harm ecosystems, affecting local communities that rely on agriculture and fishing.
Some reports suggest that fish catches in certain areas have declined due to pollution linked to drilling activities. This raises important questions about how Uganda can balance economic development with protecting the environment.
The upcoming licensing round builds on the previous one, which ended in 2022 and saw several exploration blocks awarded to companies.
Uganda hopes to attract more international firms to invest in its oil sector as it aims to strengthen its position in Africa’s energy market amid competition from neighboring countries.
Uganda is also exploring other natural resources to diversify its economy. The government recently announced plans to revive the Kilembe copper mine near the border with the Democratic Republic of Congo.
The mine has been inactive since the 1970s but is believed to contain large amounts of copper and cobalt. Reviving such projects could help reduce Uganda’s reliance on oil alone and open up more economic opportunities.
As Ugandaprepares for this new licensing round, it faces both opportunities and challenges. Attracting foreign investment will be essential to growing the oil sector, but this must be done responsibly to safeguard the environment and support local communities.
The government’s ability to manage these resources effectively will be closely watched by both local and international stakeholders.
Uganda’s third petroleum exploration licensing round offers a valuable opportunity to tap into its rich oil reserves and drive economic growth.
However, the country must also address environmental and community concerns to ensure a sustainable and balanced approach as it moves forward with its oil ambitions.
