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OIL AND GAS DEVELOPMENTIN THE ALBERTINE GRABEN
EMMA NAHAYO MUGIZISENIOR CORPORATE AFFAIRS OFFICER
Presented at a public talk organised by Nature UgandaUganda Museum
Thursday, 2nd August, 2018
PRESENTATION OUTLINE
1. Introduction
2. Current Status of the Sector
3. Approach to Regulating the Sector
4. Key Environmental & Social Issues
5. Management of Key Issues
6. Conclusion
1. INTRODUCTIONWho we are
• We exist to contribute to Uganda’s socio-economictransformation through efficient and sustainablepetroleum resource management.
PurposeStatement:
• To be a Leading Petroleum Regulatory Agency.Vision:
• To regulate and monitor the petroleum sector inorder to create lasting value for society andcontribute to Uganda being a sound investmentdestination.
MissionStatement:
• Petroleum (Exploration,Development andProduction Act) 2013 –Section 10 functions of PAU
• Four sets of UpstreamRegulations ; Technical, HSE,Metering and NationalContent
• Model PSA 2016
• Petroleum Supply Act2003
• Regulated by thePetroleum SupplyDepartment in MEMD
• Petroleum (Refining,Conversion, Transmissionand Midstream Storage) Act2013 - (Section 6 onfunctions of PAU
• Three sets of MidstreamRegulations (2016); HSE,National Content andTechnical Aspects
Upstream Midstream Downstream
Distribution, Sales andMarketing
Exploration, Development,Production and Decommissioning
Transportation, Refiningand Gas Processing
2. CURRENT STATUS OF THE SECTOR
Legal Framework
Current Status of the Sector
• To support in Policy formulation and licensing of acreage• Upstream, Midstream and Downstream depts.• To support in Policy formulation and licensing of acreage• Upstream, Midstream and Downstream depts.
DIRECTORATE OF PETROLEUM(In Ministry of Energy and
Mineral Development)
• To regulate and monitor Upstream and Midstream sub-sectors
• Ensure compliance of petroleum operations
• To regulate and monitor Upstream and Midstream sub-sectors
• Ensure compliance of petroleum operations
PETROLEUM AUTHORITY OFUGANDA
• To move forward the country’s commercial interest inPSAs
• Create Joint Ventures across the petroleum value chain
• To move forward the country’s commercial interest inPSAs
• Create Joint Ventures across the petroleum value chain
UGANDA NATIONAL OILCOMPANY LTD
Other MDAs undertake their respective roles
Institutional Framework
Roles of Public and Private Sector players defined in the National Oil and Gas Policy for Uganda, 2008
2006 – CommercialDiscovery
2006 – CommercialDiscovery
21 Discoveries; 88%drilling success rate21 Discoveries; 88%drilling success rate
6.5Bbbls STOIIP;1.4Bbbls , 500bcf gas
6.5Bbbls STOIIP;1.4Bbbls , 500bcf gas
9 PLs over 14 discoveries9 PLs over 14 discoveries
3 PLAs under review3 PLAs under review
3 ELs issued in Sept-Oct2017
3 ELs issued in Sept-Oct2017
Exploration of new acreageto commence in 2018
Exploration of new acreageto commence in 2018
Current Status of the Sector
Operator PSA License Partners
CNOOC (U) Ltd EA 3A Kingfisher ProductionLicense (PL)
TotalTullowUNOC
Total E&PUganda
EA 1&1A 3 PLs over 4 fields3 PL applications
CNOOCTullowUNOC
Tullow Oil EA 2 5 PLs over 9 fields CNOOCTotalUNOC
Armour Energy Kanywataba 1 Exploration License (EL) UNOC
OrantoPetroleum
2 PSAs Ngassa 2 ELs (Shallow and Deepplays)
UNOC
Current Status of the Sector
Licenses/ Acreage
Road to First Oil ~ US$ 15 - 20 Billion Investment
UpstreamDevt
New Exploration,CPFs, Pipelines andaccess roads, camps
$ 8 bn
UgandaRefineryProject
60,000 bpd Refinery,211km products
pipeline$ 3-4 bn
East AfricaCrude OilPipeline
~200,000 bpd
$ 3.55bn
SupportInfrastructure
Airport, IndustrialPark, Roads
$ 1bn
Opportunity for National Content Development
KEY PROJECTS
Current Status of the Sector
Key ProjectsKey Projects
Three Licenses under Exploration :Kanywataba area to Armour Energy LtdNgassa deep play to Oranto Petroleum LtdNgassa shallow play to Oranto Petroleum Ltd
Planned Work Programmes (4 years)Reprocessing the existing seismic data,Acquiring new seismic data,Geological and geophysical studiesDrilling of at least two exploration wells.
Other BasinsMonitor and participate in data acquisitionover unlicensed areas in Albertine Graben,Kadam-Moroto, Lake Kyoga and Hoima Basins
New Exploration
Key ProjectsKey Projects
Tilenga Project• Total: Jobi-Rii, Ngiri & Gunya fields• Tullow:Kigogole-Ngara, Nsoga, Ngege, Kasamene-
Wahirindi.• Production plateau of ~190k bopd - 4yr plateau• 35 wellpads (MFNP-10 and South-25)• ~ 412 wells (190 OP/189 WI/33 Obs)• Buliisa–Kabaale Feeder pipeline: 95 km, 24”• RAP and ESIA Studies are ongoing
Tilenga CPF Stick build Design
3D Design of Kingfisher Pad 2
Kingfisher CPF 3D Design
3D Design of Kingfisher Pad 2
Development and Production
Key ProjectsKey Projects
Development and Production
Kingfisher Project• CNOOC - Kingfisher field.• Tullow – Future tie back from Kaiso Tonya
(Mputa-Nzizi-Waraga) fields• Production plateau of ~40k bopd 5yr plateau• ~ 31 wells on 4 well pads in KF (20 OP, 11 WI)• ~ 20 wells on 3 well pads in KT• Kingfisher-Kabaale Feeder pipeline: 46km, 12”• RAP and ESIA studies are ongoing
Key ProjectsKey Projects
Uganda consumption approx. 32,000bbl/day;growing at a rate of 7% p.a.
Feasibility of refining in Uganda confirmed
Refinery of 60,000bbl/day planned to bedeveloped located in Kabaale, Hoima to servethe local and regional market
PFA with lead investor (AGRC) signed: Pre-FIDactivities (FEED, ESIA etc) to commence.
Uganda Refinery Project
• ~US$ 3-4 billion project (includes 211km products pipeline).
• GoU’s stake to be held through the Uganda Refinery Holding Company (URHC) - asubsidiary of the Uganda National Oil Company (UNOC).
• 29 Sq.km of land acquired (5 sq. Km for refinery): 98.7% of PAPs compensated
Key ProjectsKey Projects
Hoima (Uganda) - Tanga (Tanzania)
Project partners; GoU, GoT, Upstreamlicensees
1445km long, 24-inch diameter withCAPEX US$ 3.5 billion
East Africa Crude Oil Pipeline (EACOP) Project
GIE Engineering (USA) completed FEEDin Dec 2017; Target FID; 2018RSK Environment Limited (UK) & Eco &Partner Consult (UG) undertaking ESIA
Inter Governmental Agreement – GoUand GoT signed in May 2017
Negotiation of Host GovernmentAgreements ongoing
Foundation Stone laid in Tanga – Aug2017, Hoima and Mutukula – Nov 2017
Districts: Hoima, Kakumiro, Kyankwanzi, Mubende,Gomba, Sembabule, Lwengo, Rakai and Kyotera
RAP for construction camps (4 districts) hascommenced.
Key ProjectsKey Projects
14
• Master Plan for the Industrial Parkdeveloped by SMEC International (Australia);
• 29 sq.km of land in Kabaale, Hoima to host:
• A Refinery• Petroleum Products Storage,• An International Airport• A crude oil storage and transmission hub,• Logistics warehousing• Petro-chemical Industries, among others
• Airport Development; SBI from Israel andColas UK (SBC (U) Ltd.
• UK Export Credit Financing – US$ 300m
• Usable runway by Sept’ 2019.
Support Infrastructure
Key ProjectsKey ProjectsSupport Infrastructure: Roads
• Planned network of 12roads; 580 Kilometres at US$ 500 million
• Financing by GoU, EximBank China and UK
• Individual road lengthsrange from 23 kilometresto 110 Kilometres includinga 3 kilometre bridge
Key ProjectsKey ProjectsSupport Infrastructure: Roads
Road Name Length (KM) District
1. Hoima-Butiaba-Wanseko 111 Hoima Buliisa
2. Masindi-Biiso 54 Masindi
3. Masindi-Bugungu via Murchison Falls National Park 80 Masindi
4. Kaseetaa-Lweza via Bugoma Forest 16 Hoima
5. Hohwa-Nyairongo-Kyarushesha 25 Hoima
6. Wanseko-Bugungu 23 Buliisa
7. Buhimba- Nalweyo-Kakindu-Kakumiro-Mubende 100 Mubende, Kibaale
8. Lusalira-Nkonge-Sembabule 97 Sembabule,Mpigi
9. Kyotera Rakai 20 Rakai
10. Kabaale – Kiziranfumbi Road 30 Buliisa
11 Tangi Gate Bridge - Hoima
12. Emmi Bridge - Nwoya
Total 556
3. APPROACH TO REGULATION3. APPROACH TO REGULATION
Optimise Oil Recovery Economic Analysis
Environment and SocialProtection Cost Efficiency
Management ofPetroleum Data National Content
Multi-Media Stakeholderengagement
Health, Safety andSecurity
Regulatory Tools
1. Petroleum activities in protected andenvironmentally sensitive areas .
2. Co-existence with local communities.3. Co-existence with archaeology and
cultural heritage.4. Co-existence with other industries and
service providers.5. Co-existence with tourism.6. Co-existence with fisheries.7. Sharing of revenues and wellbeing at
national and local/regional level.8. Discharges and emissions from the
industry.9. Waste management.10.Water Management.
4. KEY ENVIRONMENTAL & SOCIAL ISSUES4. KEY ENVIRONMENTAL & SOCIAL ISSUES
11. Oil spill preparedness on land andsurface waters.
12. Infrastructure development.13. Institutional capacity building.14. Capacity of district local
governments to manage and/oradapt to environmental and socio-economic challenges.
15. Development of relevantlegislation, regulations andstandards.
16. Land use and spatial planning.17. Trans-boundary and international
issues.18. Establishment of transparent
baseline data.
Key environmental & social issues
Environmental sensitivity of theAlbertine Graben established.
Biodiversity, Social-economic,Cultural heritage and Physicalenvironment baseline dataacquired.
Specialist studies e.g. elephantcollaring, giraffe, crocodile, fish andbird counts have been undertaken
Habitat mapping in Protected Areasand Ramsar sites has beenundertaken
5. MANAGEMENT OF ENVIRONMENTAL & SOCIAL ISSUES5. MANAGEMENT OF ENVIRONMENTAL & SOCIAL ISSUES
The plan sets out the indicators to bemonitored under above thematicareas.
The monitoring frequency andresponsible Government Institutionare stated in the Plan.
Development of a National Oil Spilland Contingency Plan is currently inprogress
Review of various environment lawsincluding the National EnvironmentAct, 1995, EIA regulations, WasteManagement regulations, Noise andVibrations is under way
Management of HSE and social issues
Environmental Impact Assessmentand Annual undertaken for all projectslikely to have an impact on theEnvironment. (Tilenga, KFDA andEACOP)
A 5 year Environmental monitoringframework for Albertine Graben wasbeen developed and will be reviewed
Valued Ecosystem Components(VECs) under five thematic areas(aquatic, terrestrial, physical-chemical,society and management and businessissues were identified.
A Strategic Environmental Assessment(SEA) of petroleum operations wasundertaken to ensure thatenvironmental issues and concerns areconsidered during early decision makingand integrated into laws/regulationsand major Policies, Plans and Programs(PPPs) associated with the sector.
The SEA registered and analysed morethan 135 issues and made 18 salientrecommendations.
A multi-Institutional Implementationcommittee has been formed under thesupervision of the Cabinet Committeeon oil and gas to implement therecommendations.
Management of HSE and social issues
Environmentally friendly technology e.g.low energy and cable-less technologyduring seismic acquisition in MFNP
Precautions and safeguards e.g. wastecontainerisation outside ProtectedAreas.
Development, review and update ofenvironment legislation, standards andguidelines
24/7 field monitoring of operations
Regular engagements with oilcompanies, relevant Government MDAsand other stakeholders including media,CSOs and host communities
Management of HSE and social issues
6. CONCLUSIONThe emerging petroleum sector in Uganda has a highpotential to contribute significantly to the economy,industrialisation and wealth creation plans. As governmentand all other relevant stakeholders including CSOs, we needto strengthen our regulatory and oversight roles to ensurethat Health Safety and Environment protection requirementsand guidelines are rigorously followed in the oil and gassector. Success lies in:
1. Right policies.
2. Clear laws, regulations, guidelines and standards.
3. Strong regulating Institutions and relevantstakeholders with oversight role
4. Effective monitoring and supervisory strategy.
KEEP IN TOUCH…
THANK YOUHead Office: Plot 34-36, Lugard Road, Entebbe |P.O. Box 833 Entebbe, Uganda | +256 414 320 423
Liaison Office: Plot 29/33, Kampala Road | Amber House, 4th Floor, Block B | +256 414 231 924
@PAU_UGANDA
@Petroleum Authority of Uganda
www.pau.go.ug
