DEVELOPMENTS AND OPPORTUNITIES IN THE UPSTREAM PETROLEUM ... · DEVELOPMENTS AND OPPORTUNITIES IN THE UPSTREAM PETROLEUM SECTOR IN UGANDA PRESENTED AT THE AAPG 2011 ANNUAL CONVENTION

DEVELOPMENTS AND OPPORTUNITIES IN THE UPSTREAM DEVELOPMENTS AND OPPORTUNITIES IN THE UPSTREAM PETROLEUM SECTOR IN UGANDAPETROLEUM SECTOR IN UGANDA

PRESENTED AT THE AAPG 2011 ANNUAL CONVENTION ANDPRESENTED AT THE AAPG 2011 ANNUAL CONVENTION ANDEXHIBITION 2011,

HOUSTON, TEXAS, USA

ByFrank Mugisha & Robert Tugume

Petroleum Exploration and Production Department (PEPD)Petroleum Exploration and Production Department (PEPD)Ministry of Energy and Mineral Development

Uganda

11th APRIL 2011

Petroleum Exploration and Production Department

1

PRESENTATION OUTLINEPRESENTATION OUTLINE1. Introduction

Location of UgandaRegional setting of Albertine GrabenS di t b i i U dSedimentary basins in Uganda

2. History of Petroleum ExplorationAchievementsR bResource baseExploration Strategy

3. LicensingStatus of LicensingPolicy and Future Plans

4. Production PlansProperties of Uganda’s CrudeStatus of DevelopmentsRefinery study

5 Opportunities


2

5. Opportunities6. Conclusion

1. INTRODUCTION1. INTRODUCTION1.1 LOCATION OF UGANDA

EAST AFRICAN EAST AFRICAN COMMUNITYCOMMUNITY

Planned:• Common Market 2010• Monetary Union 2012• Ultimately Federation

COMMUNITYCOMMUNITY

• Ultimately Federation

Uganda is part of the EACOther Partner StatesOther Partner States

Kenya, Uganda, Tanzania, Burundi and Rwanda

Cooperation in Political, Economical and Social fields.

UGANDAUGANDAPopulation: ~ 30million people

Area: 241.038 sq. km

P C it GDP 380 $


3

Per Capita GDP : 380 US$

Economic growth rate : 6.1%

1. INTRODUCTION 1. INTRODUCTION (2(2))

The Albertine Graben is the th t t f th W t

1.2 REGIONAL SETTING OF ALBERTINE GRABEN

northern most part of the Western arm of the East African Rift System (EARS).

It is aTertiary basin, 500 km long, averaging 45 km wide and 23,000 sq km in Uganda

Lake AlbertEastern ArmEastern Armsq km in Uganda

1300 km from the coastLake Tanganyika

The EARS bifurcates into two arms;

Lake Malawi

g y


4Eastern and Western arms separated by Tanzanian Craton

1. INTRODUCTION 1. INTRODUCTION (3(3))

1.3 SEDIMENTARY BASINS IN UGANDASUDAN Six Sedimentary Basins

Kadam-MorotoBasin

DRC

1. Albertine Graben

2. Hoima BasinLake Kyoga

Basin

UGANDA

Hoima Basin

3. Kadam-Moroto Basin

4. Lake Kyoga Basin

Basins whose potential is under investigation

Lake VictoriaLake

L. WamalaBasin

UGANDA

KENYA

4. Lake Kyoga Basin

5. Lake Wamala BasinNot Prospective

Lake VictoriaEdward

TANZANIARWANDA

6. Lake Victoria Basin

The Albertine Graben is the


5

most prospective

2. HISTORY OF EXPLORATION2. HISTORY OF EXPLORATIONC S

• Reporting of oil seepages1920 – 1945: PRELIMINARY EXPLORATION

2.1 ACHIEVEMENTS

• Reporting of oil seepages• Drilling of Waki-B1 in 1938 by Anglo

European Investment Company of South Africa

• Some shallow stratigraphic wells drilled in the areas of Kibiro and drilled in the areas of Kibiro and Kibuku based on oil seep observations

1945 1980 STAGNATION• Initially due to World War II• Change in Policy

1945 – 1980: STAGNATION


• Change in Policy• Later due to political uncertainties

2. HISTORY OF EXPLORATION2. HISTORY OF EXPLORATION1980 to Date: CONSISTENT AND MODERN

EFFORTSGovernment acquisition of Gravity

-205 -168 -153 -144 -139 -133 -125 -119 -115 -104

Gravity anomaly(mGals)40

0000

400000

100000 200000 300000

3°20

' 3°20'

29°10' 30°00' 30°50' 31°40'.Government acquisition of Gravity,Magnetic, geological and geochemicaldata including aeromagnetic data in1983.

3000

00

300000

2°30

' 2°30'...

PARAA

NEBBI

ARUA

Country Boundary

Lakes and Rivers

Exploration Area Boundary

Roads

Major Towns

LEGEND

Enactment of the Petroleum Exploration and Production Act, 1985.

C t f i li d t i i

2000

00

200000

1°40

' 1°40'. .HOIMA

MA

Commencement of specialized training in petroleum sciences by Ugandans.

Formation of PEPD in 1991.

010

0000

0100000

00'

0°50

'

0°0°50'

.. .

KASESE

MUBENDEFORT PORTAL To

To Ma

Licensing Commences and continues until 2006.

Fi t Oil di i 2006 b H d -1

0000

00

-1000000

100000 200000 300000

-0°5

0'0°

0

-0°50'00'

29°10' 30°00' 30°50' 31°40'

.MBARARATo Masaka


First Oil discovery in 2006 by Hardman Resources /Energy Africa (now Tullow)

50000 0 50000

(meters)Arc 1960 / UTM zone 36N

29 10 30 00 30 50 31 40

2. HISTORY OF EXPLORATION2. HISTORY OF EXPLORATION

2.2 RESOURCE BASESEISMIC DATA COVERAGE

(

(

NEBBI

Offaka

Wianaka

250000 300000 350000

3000

00

3000

00

µ EA1

7,000 line km of 2D seismic data2,500km on Lake Albert

1

111 1'

1'

1

''

'

'

'

'

S(

(

(

(

(

(

(

(

(

RII‐1

MPYO‐1

JOBI‐1

NGIRI‐2

NSOGA‐5NSOGA‐1

NGIRI‐1

KIGOGOLE‐2KIGOGOLE‐5

WAIRINDI‐1 KIGOGOLE‐3KASAMENE‐2KASAMENE‐3 & 3A

Agwak

Pakuba

Paidha

Wanseko

Buliisa

Pakwach

Panyimur

Panyigoro

Paraa Lodge

NGIRI

PURA

NSOGA

MPYO

NGIRI

MPYO

JOBI (BUFFALO)

KIGOGOLE

JOBI NORTH

Jobi‐East

WAIRINDI

RII (GIRAFFE)

BBEGERI

KASAMENE

Leopard

2500

00

2500

00

,

4,500km on land

1,250km2 of 3D seismic data

ª

µ0

'1

µµ

(

(

(

(

(

NGEGE‐1

NGARA‐1

AWAKA‐1

WAKI B‐1

TAITAI 1

KARUKA‐1

KARUKA 2

Biiso

Bukumi

Bugana

ButiabaKibanda

KARUKA

NGEGE

TAITAI

KARAKOGERE

KASURUBAN

NGARA

KWOKE

LANYA

MUTONTA

NTERA

2000

00

2000

00

D.R.CONGO

Albert ,

Over 30 prospects mapped on seismic data

µµ

111

+1

1*1

1

S

S

(

(

(

(

(

(

UGANDA

NZIZI‐3NZIZI‐2NZIZI‐1 MPUTA‐5

MPUTA‐4

MPUTA‐3

MPUTA‐2

MPUTA‐1

WARAGA‐1

NGASSA‐2NGASSA 1

HOIMA

Kikube

Ihungu

Bikonzi

MASINDI

Bwijanga

Biseruka

Kigorobya

NGASSA

KISINJA

NZIZIMPUTA

PELICAN

WARAGA

PELICAN_WEST

NGAMBWA

0000

0000

UGANDA

L.Alb

seismic data

20 prospects drilled.

16 Oil Di i d 1 G

10' '1

(

(

(

UGANDA

KINGFISHER‐3

KINGFISHER‐2KINGFISHER‐1

Kagadi

Bukwiri

Ntoroko

Kyankwanzi

SUNBIRD

CRANE

KINGFISHER

KINGFISHER NE

0 0

150

150

LEGENDTYPE

Lead

Oil Discovery

Oil Field

UGANDA

EA3A


16 Oil Discoveries and 1 Gas discovery. S

S

(

(

Kagadi

KIBOGA

250000 300000 350000

1000

00

1000

00

0 9 184.5Kilometers

Oil Field

Oil and Gas Discovery

Prospect


SEISMIC DATA COVERAGE PROGRESS OF SEISMIC DATA ACQUISTION IN UGANDA

200000 300000 400000

4°

4°

29°30' 30°00' 30°30' 31°00' 31°30' 32°00' 32°30'

LEGEND

SUDAN

3000

0040

0000

300000400000

3°

3°..

.

NEBBI

ARUA

MOYO

To Gulu

Roads

Exploration boundary

Major Towns

Water Bodies

LEGEND

Rhino Camp Basin, NEPTUNE 2D Seismic Lines

Pakwach Basin, Phase-2 2D & JV 2D Infill Seismic Lines

Butiaba-Wanseko, Phases 1,2,3&4 2D Seismic Lines

2D Seismic Offshore, Lake Albert, 2D Seismic Lines

Kaiso-Tonya, Onshore and TZ 2D Seismic Lines

Bugoma 2D Marine Infill & Buhuka Area TZ 2D Seismic Lines

Semliki Basin 2D Seismic Lines

EA4B Edward Basin 2D Seismic Lines

Ntoroko 2D Seismic Data

Kaiso-Tonya, Marine & Land 3D Seismic

020

0000

1200000

1°2°

12°

R. Kafu

R. Nile

. ..

HOIMA

MASINDI

PARAA

To Kampala

DEMOCRA

TIC REP

UBLIC

OF CONGO

A

Buhuka Area 3D Seismic

Semliki 3D Seismic

Ongoing 3D Seismic Data acquistion

010

0000

0100000

0°1

0°1°

Semlik

i

.. .

KASESE

MUBENDEFORT PORTALTo Kampala

To Masaka

To Kampala

UGANDA

-100

000 -100000

200000 300000 400000

-1° -1°

29°30' 30°00' 30°30' 31°00' 31°30' 32°00' 32°30'

.MBARARATo Masaka


9

50000 0 50000 100000 150000

(meters)Arc 1960 / UTM zone 36N


DRILLED WELLS

1

S(

(

(

(

(

(

(

JOBI‐1

AgwakNEBBI

Pakuba

Paidha

Pakwach

Panyimur

Panyigoro

Paraa Lodge

31°50'0"E31°40'0"E31°30'0"E31°20'0"E31°10'0"E31°0'0"E30°50'0"E30°40'0"E30°30'0"E

2°30

'0"N

2°30

'0"N

°20'0

"N

°20'0

"N

µLegendTownsSTATUS

_̂ City

S Major TownA t t l f 49 ll h ª

111 1'

'1

1'

1

' ''

'

'

'(

(

(

( (

NGARA‐1

NGEGE‐1

KASAMENE‐1 & 2KASAMENE‐3 & 3A

WAIRINDI‐1AWAKA‐1

KIGOGOLE‐2 & 5KIGOGOLE‐1& 4NSOGA‐1& 5

MPYO‐1RII‐1

NGIRI‐2NGIRI‐1

Bugana

Buliisa

2 2°

2°10

'0"N

2°10

'0"N

2°0'0

"N

2°0'0

"N

Major Town

( Small Town

WellsHydroCarbons' Oil Well

* Gas Well

1 Oil and Gas Well

µ Oil Shows

0 Oil and Gas Shows

+ Gas Shows

ª Dry Well

"

A total of 49 wells have been drilled. 44 wells have encountered

µ 0

µµ

S

(

(

(

(

(

(

(NGASSA‐2WARAGA‐1

TAITAI 1

WAKI B‐1

KARUKA 2

KARUKA‐1

Biiso

Bukumi

Ihungu

Bikonzi

Kibanda

MASINDI

Kigorobya

2 2

1°50

'0"N

1°50

'0"N

1°40

'0"N

1°40

'0"N

Drilling in Progress

International Boundary

Blocks Covering Discoveries Under Appraisal by Tullow

Boundary of Exploration Areashydrocarbons.

Reserves estimated at

'

µµ111

+1

1*1

1

S

(

(

(

(

(

MPUTA‐2

MPUTA‐1, 3,4 & 5

NGASSA 1

NZIZI‐1, 2 & 3

KINGFISHER‐2UGANDA

HOIMA

Kikube

Kabaale

Bwijanga

Biseruka

1

1°30

'0"N

1°30

'0"N

1°20

'0"N

1°20

'0"N

over 2.5 billion boe in place.

More e ploration 10''1

(

(

(

(

KINGFISHER‐1, 1A & 1B

KINGFISHER‐3 & 3A

Kagadi

Bukwiri

Ntoroko

Kyankwanzi

1°10

'0"N

1°10

'0"N

1°0'0

"N

1°0'0

"N

More exploration ongoing. Only about 35% covered.


10

SKIBOGA

31°50'0"E31°40'0"E31°30'0"E31°20'0"E31°10'0"E31°0'0"E30°50'0"E30°40'0"E30°30'0"E

0 9 18 27 364.5Kilometers

2. HISTORY OF EXPLORATION2. HISTORY OF EXPLORATION2.3 Exploration Strategy

Training of staff in all the sectors of the petroleum industry Training of staff in all the sectors of the petroleum industry. Data acquisition by Government which was used in promotion of acreage at International Conferences.Open door Policy Licensing and Licensing of small size of acreage.The early strategy of subdividing the acreage into sizes that enable small independent companies to undertake meaningful work programssmall independent companies to undertake meaningful work programs.Environmental Protection has been a priority in all operations.Local involvement has made communities supportiveLocal involvement has made communities supportive.Proper and systematic data management.


11

3. LICENSING3. LICENSING

Open door Policy in Licensing til 2006

3.1 Status

until 2006

Albertine Graben sub divided into 11 Exploration Areasinto 11 Exploration Areas

Currently 5 active Production Sharing Agreements (PSA)g g ( )

3 Licensed Operators.

There is a halt on licensing to There is a halt on licensing to update regulatory framework i.e. policy and legislation.


12

3. LICENSING3. LICENSING

Previously used open door policy of Licensing

3.2 New Policy direction

Previously used open door policy of LicensingThe National Oil and Gas Policy recommends; an open, efficient, transparent and effective licensing for the unlicensed

d li i h d and relinquished acreage.Subsequent licensing in Uganda will therefore be through competitive bidding.p gCurrently upgrading legislation to cover the new type of licensing and remove aspects of the law that are out of date.Updated law is expected to be in place during 2011.


13

4. PRODUCTION PLANS4. PRODUCTION PLANS

Waraga-1: 33.80 API ,

4.1 Properties of Uganda’s Crudei. Crude is 30-340 API

,flowed 12,050 bopd

Kingfisher: 33 0API , flowed 14,000 bopd.

ii. Low Sulphur,

iii. Waxy crude,

iv Pour point of 40 degrees Celsius

.

Mputa-1: 33.30 API flowed 1,035 bopd.

iv. Pour point of 40 degrees Celsius.

Crude requires heating in order to transport it.

Five discoveries; Mputa, Nzizi, Kajubirizi (Kingfisher), Wahrindi and Kasamene

4.2 DevelopmentsFive discoveries; Mputa, Nzizi, Kajubirizi (Kingfisher), Wahrindi and Kasamene at Field Development Stage.

These fields hold in excess of 600 million barrels recoverable reserves and Nziziis estimated to contain 30 bcf of gas.


14

s es a ed o co a 30 bc o gas

An additional 10 discoveries currently under appraisal.

4. PRODUCTION PLANS4. PRODUCTION PLANS

Feasibility study for the development of a refinery in

4.3 Refinery:

development of a refinery in Uganda was undertaken in 2010.Petroleum Product demand of over 150,000 bbl/d and growth at 5% per annumat 5% per annum.Study Confirms refinery is a very profitable project with excellent refinery margins.Government planning

ti l ti f th


15

promotional meetings for the project later this year.

5. OPPORTUNITIES5. OPPORTUNITIES

Opportunitiespp


16

5. OPPORTUNITIES 5. OPPORTUNITIES New and relinquished acreage. Government intends to undertake licensing rounds of unlicensed areas and undertake licensing rounds of unlicensed areas and those that will be relinquished. This awaits the completion of the new regulatory framework.Participation in refinery development.Non-exclusive surveys, in preparations for future ylicensing.Joint Ventures and farm-in/out arrangements in licences held by small independents.


17

5. OPPORTUNITIES 5. OPPORTUNITIES

The emerging infrastructure such as refining and t t ti f diti d h d b transportation of commodities and hydrocarbon products.Power generation using hydrocarbon gas and Heavy Power generation using hydrocarbon gas and Heavy Fuel Oil (HFO)Service provision and contracts in the fields of Service provision and contracts in the fields of engineering, procurement,, catering, analytical laboratories, waste management, Clearing and laboratories, waste management, Clearing and forwarding, flight charters, insurance, ICT.


18

5. OPPORTUNITIES 5. OPPORTUNITIES INCENTIVES OFFERED

a well managed and liberalised economytax incentives on equipment, repatriation of incomes, and a conducive contracting and regulatory a conducive contracting and regulatory framework.


19

6. CONCLUSIONS6. CONCLUSIONS1. Exploration success in the Albertine Graben has strongly de-risked the

East African Rift System.2 Di d i th Alb ti G b ti t d t 2. Discovered resources in the Albertine Graben now estimated at over

2.5 billion barrels of oil in place.3. Discovered Oil is sweet, 30-340 API, but waxy with low pour point. This , , y p p

makes the transportation difficult and expensive.4. Government Policy is to refine the discovered crude oil in the country

before export options are considered Initial steps of developing a before export options are considered. Initial steps of developing a refinery in Uganda are underway.

5. Plans to undertake a licensing round after formulation of a new law are b i dbeing made.

6. Uganda will maintain the predictable and conducive environment that has facilitated the unprecedented exploration success in the Country.


20

p p y

Further Information: www. petroleum.go.ugp g g


21

Documents

DEVELOPMENTS AND OPPORTUNITIES IN THE UPSTREAM PETROLEUM ... · DEVELOPMENTS AND OPPORTUNITIES IN THE UPSTREAM PETROLEUM SECTOR IN UGANDA PRESENTED AT THE AAPG 2011 ANNUAL CONVENTION