(Bloomberg) – Uganda said it extended an oil exploration license to Nigeria’s Oranto Petroleum Ltd. by two years after the company asked for compensation for time lost during the Covid-19 pandemic.
The permit had been due to expire Dec. 29, and was initially granted to scour the Ngassa Shallow and Deep areas in the western Hoima and Kikuube districts in 2017, Solomon Muyita, the Energy Ministry spokesman, said in an email statement.
Extension of the permit is in line with the country’s drive to boost recoverable oil from current levels of 1.4 Bbbl, according to the statement.
A production sharing agreement, royalties, cost of recovery, and profit sharing are part of the terms included in the extension, the ministry said.
French oil giant TotalEnergies SE is leading the development of Uganda’s oil fields, alongside China’s Cnooc Ltd. and Uganda National Oil Co. The East African country is aiming to start production to start in 2025.
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