Govt, UNOC sign production sharing agreement for Kasuruban block
The Chief Executive officer UNOC Proscovia Nabbanja noted the company has a cardinal role to play in the upstream value chain to ensure sustainable utilization of petroleum resources in Uganda.
The Minister of Energy and Mineral Development Ruth Nankabirwa on behalf of the government has signed a production sharing agreement (PSA) with Uganda National Oil Limited (UNOC), as well as the issuance of a petroleum exploration license for the Kasuruban area.
The signing of agreements ceremony was held at the ministry headquarters in Kampala. Nankabirwa applauded the people of Uganda for achieving an important milestone.
“Signing of this production sharing agreement for petroleum exploration, development and production between Uganda government and Uganda National Oil Company (UNOC) for Kasuruban contract area marks a significant achievement of the country’s competitive second licensing round for the Oil and Gas sector,” she said.
Adding that this agreement attests to the government’s commitment to fulfilling the objectives and principles of Uganda’s National Oil and Gas policy that provides for efficiency in licensing through open competitive bidding rounds.
“The Petroleum Exploration License awarded to UNOC in the Kasuruban block is in accordance with section 58 of the petroleum Act 2013. This license marks a significant milestone for the competitive second licensing round which was announced in May 2019 in Mombasa Kenya,” she stressed.
The signing of the production sharing agreement of Kasuruban was cleared by Cabinet, the Ministry of Finance together with the Ministry of Justice and Constitutional Affairs.
Relatedly, the Permanent Secretary for the Ministry of Energy Irene Bateebe also said that following the enactment of the required policy, legal and regulatory frameworks for the Oil and Gas sector in Uganda, the government decided to implement open, transparent and competitive licensing rounds as required by the petroleum exploration, development and production Act 2013.
“Two of four qualified companies participated and submitted bids at the end of the bidding stage and UNOC won,” she revealed.
The Chief Executive officer of UNOC Proscovia Nabbanja noted the company has a cardinal role to play in the upstream value chain to ensure sustainable utilization of petroleum resources in Uganda.
