By Nicholas Bariyo
KAMPALA, Uganda---Uganda has invited bids from consultants to
advise the government on its next oil licensing round in early
2015, involving more than a dozen oil blocks, the East African
nation's first offer in eight years and its biggest in history.
"The consultant will…arrange for international conferences in
strategic parts of the world for [government] representatives to
speak to distinguished audiences in the oil and gas industry" the
ministry stated, adding that interested companies have to submit
bids by Oct. 02.
Specifically, the consultant will assist government to put
together data to establish the actual prospects of the blocks and
liaise with international companies, as well as help in the pricing
and monitoring of the accessed data, the energy and minerals
ministry said.
Uganda aims to attract more investors in its fledging oil
industry, where oil companies have so far discovered at least 6.5
billion barrels of crude oil, from less than 40% of its oil region,
rendering the country's crude fields the third largest by reserves
in Sub Saharan Africa after Nigeria and Angola.
The blocks on offer, lie along Uganda's western border with
Congo and include at least four lucrative discoveries, relinquished
by the existing oil companies earlier this year.
Unlike the current operators who were licensed on a "first come
first serve" basis, the next licensing round will be held under an
open competitive bidding process, according to Ernest Rubondo, the
head of the state-run Petroleum Exploration and Production
department.
According to Mr. Rubondo, more than 60 international companies
have expressed interest in the next licensing round.
Uganda imposed a moratorium on new oil licensing in 2007,
shortly after exploration companies confirmed commercial oil
reserves. The government has since been establishing a new
regulatory framework for the fledging sector.
U.K.-based campaigner, Global Witness said in a report last week
that Uganda had succeeded in negotiating better financial deals in
two most recent oil agreements with UK-'s Tullow Oil PLC (TLW.LN),
France's Total SA (TOT) and China's Cnooc Ltd. (CEO), compared with
the older ones.
The East African region has been a hotspot for oil and natural
gas exploration following a flurry of oil and gas discoveries in
Uganda, Kenya, Tanzania and Mozambique.
Write to Nicholas Bariyo at nicholas.bariyo@wsj.com
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