The new areas are the Moroto-Kadam Basin, the Hoima Basin, and the Lake Kyoga Basin. By Benon Ojiambo
“The government has launched a process to open 26 other districts to investors for oil exploration. The new areas, where geological surveys have revealed possibilities of the existence of oil and gas, include the Moroto-Kadam Basin, measuring 5,672 sq. km; the Hoima Basin, with aerial coverage of 3,741 sq. km, and the Lake Kyoga Basin, covering 7,831 sq. km. In total, the basins cover 26 districts.
As part of the process leading to the opening of these areas to investors who can apply for exploration licenses, the government has invited members of the public to give their opinion on the impact assessment reports within 90 days, effective November 14, 2024. The energy state minister, Okaasai Opolot, made the announcement soliciting public opinion yesterday at the ministry of energy and mineral development offices in Kampala.
‘I call on the public to access and study the impact of assessment reports for these areas and send us informed views within the statutory 90 days after the public announcement. If you do not provide your feedback within 90 days, it will be too late for us to accept it because the provision is by law.’ Opolot said.
Officials explained that a decision on whether to open the areas for exploration will be made based on public feedback.
KADAM-MOROTO BASIN
The Moroto-Kadam Basin is located in northeastern Uganda and covers the districts of Moroto, Napak, Nakapiripirit, Katakwi, Bukedea, Kapchorwa, Bulambuli, Kumi, and part of Kween. Its total surface area is 5,672 sq. km.
According to Frank Mugisha, the assistant commissioner for exploration, preliminary geological surveys have revealed a working petroleum system confirming that hydrocarbons’ generation, accumulation, and trapping are optimal. Hydrocarbons are organic chemical compounds composed exclusively of hydrogen and carbon atoms. They naturally occur and form the basis for crude oil, natural gas, coal, and other essential energy sources.
‘In addition, the geochemical surveys have enabled the discovery of an oil seed in the basin, suggesting the possible existence of mature source rocks that have expelled hydrocarbons, necessary temperature and pressure conditions, and migration pathways that permitted the flow of hydrocarbons to the surface.’ Mugisha said.
KYOGA BASIN
Lake Kyoga basin is found in parts of the central, northern, and eastern regions of Uganda, covering districts of Amolatar, Kaberamaido, Kwania, Dokolo, Buyende, Apac, Serere, Soroti, Pallisa, Ngora, and Nakasongola with an approximate area of 7831 sq. km. The assistant commissioner explained that investigations on the hydrocarbon potential of the basin commenced in 1992 with the aeromagnetic surveys undertaken over the basin. ‘The surveys established sediment thickness of over 2km in the Western parts of the basin. Consequently, the aeromagnetic surveys recommended further detailed geological and geophysical surveys to confirm the possible existence of a working petroleum system in the basin.’ Mugisha said.
HOIMA BASIN
On the other hand, Mugisha described the Hoima basin as an old sedimentary basin adjacent to the western part of the East African Rift Valley. It occupies the six districts of Kibaale, Hoima, Kakumiro, and Kagadi and covers an approximate area of 3741 sqm.
CONFIRMED DFEPOSITS
Uganda is endowed with numerous sedimentary basins, including the Albertine Graben, Moroto-Kadam basin, Lake Kyoga basin, Hoima Basin, L. Victoria Basin, and Wamala Basin. However, the Albertine Graben has been the most investigated and prospective to date. In 2006, Uganda confirmed the presence of commercial oil deposits in the Albertine Graben, which has an estimated resource base of 6.5 billion barrels of oil, of which 1.4 billion barrels are recoverable.
The Graben also has about 500 billion cubic feet of gas resources. According to Mugisha, this discovery is in less than 20% of the Albertine Graben that has been licensed to oil companies. To facilitate the country’s commencement of commercial oil production, different infrastructure projects, such as the East African Crude Oil Pipeline, the Central Processing facility, roads, a refinery, and the Kabalega International Airport, are currently under development in the Graben. Production is expected to start in the fourth quarter of 2025.
Once production commences, the current confirmed resources are expected to be depleted within 25 years. The government is banking on confirmation of commercial oil deposits in new areas to utilize the infrastructure under development entirely. An official said it is too early to determine the quantities of the deposits in the 26 districts. ‘If no additional resources are established, these costly infrastructures and associated facilities will be utilized at less optimal economic levels.’ Opolot said.
He further said the government hopes to generate revenue from sharing speculators’ profits from the sale of data accruing from renaissance surveys, as well as application fees, licensing fees, data sale revenue, and signature bonuses from exploration licensing rounds. ‘Should commercial discoveries be made, the country would benefit from royalties, profit oil, and various taxes. These petroleum revenues would be used to fund various government development projects and boost agriculture and tourism, among others.’ The state minister of energy said.
Additionally, the confirmation of deposits in the new areas is expected to enhance national content by enabling more Ugandans to participate in the oil and gas sector through employment during exploration activities.
LIKELY IMPACT
According to one of the impact assessment reports, the oil activities on which the public is expected to comment are development and production, the stage at which oil and gas are produced, and the decommissioning of the area after production. The reports explain that this will have both positive and negative impacts. Some positive effects will include employment opportunities, training and skills development, local economy stimulation, and boosting industrial growth and infrastructure development, including roads, electricity, and water and sanitation services.
‘There is a high likelihood for petroleum activities to create many job opportunities such as employment opportunities through direct, indirect, and induced development. Local economic growth may increase the ability of households to earn a cash-based income,’ one of the reports reads in part.
When the energy ministry announced the likelihood of finding oil in the Lake Kyoga basin, Geoffrey Okaka, the chief administrative officer for Serere district, said the development gives hope to the local communities. ‘We pray that they discover oil in Serere. Such discoveries come with opportunities for the youth, women, and the business community.’ he said. ‘You have seen how oil has transformed Bunyoro; it would transform our region. As the local government, we would work to ensure that we support government developments and improve the livelihoods of Ugandans.’
Dr. Paul Bagabo, a development economist working with the Natural Resources Governance Institute, says that more oil resources are needed to supplement what has been done. ‘Should we discover more oil resources in the range of 500 million to 1 billion barrels of crude oil on top of what we have now, this will be perfect for this country,’ he said. ‘Therefore, as a country, these studies give us hope that the sector will have enough resources to run the infrastructure being developed.’
On the negative side, the reports include that the exploration activities will have an overall environmental change. The reports also predict that mobilization of personnel, equipment, crude oil, and associated petroleum products will severely affect communities and the general environment, including increasing gender-based violence and family break-ups.”