Nigeria’s oil company, Oranto Petroleum, announced Tuesday the signing of two deals with the Ugandan oil ministry to explore for hydrocarbons in the Lake Albert region, Kallanish Energy learns.
The firm was granted production sharing agreements (PSAs) in the Ngassa Shallow and Deepwater Play. The licenses, 100% owned by Oranto Petroleum, allow the company two years to explore the areas, followed by a second exploration period for a maximum of two years for both licenses.
“We are excited to enter this agreement with the Government of Uganda and look forward to a successful exploration period,” said Prince Arthur Eze, chairman of Oranto Petroleum. “Lake Albert is home to some prime petroleum acreage and we hope to make a valuable contribution to the country and its people.”
If Oranto decides to renew its exploration period for the second stage, it will acquire additional seismic data and drill an exploration and appraisal wells contingent upon the success of the first well.
The firm was among a number of international companies, including Australia’s Armour Energy, that participated in last year’s competitive oil exploration licensing round in Uganda.
Recoverable crude reserves in Uganda are estimated at 1.4-1.7 billion barrels, with in initial production planned for 2020.