MINISTRY OF ENERGY AND MINERAL DEVELOPMENT

DIRECTORATE OF PETROLEUM

PETROLEUM EXPLORATION, DEVELOPMENT AND

PRODUCTION DEPARTMENT

SUMMARY REPORT ON THE ANNUAL PETROLEUM

RESOURCES AND RESERVES FOR 2019/2020
 EXECUTIVE SUMMARY

The Ministry of Energy and Mineral Development through the Directorate of Petroleum
has the overall mandate of coordinating the oil and gas sector to ensure that the National
Oil and Gas Policy (NOGP) goal of using the Country’s Oil and Gas Resources to
Contribute to Early Achievement of Poverty Eradication and Creating Lasting Value to
Society is realised most efficiently. In operationalising the NOGP and the attendant
legislation on promoting and sustaining transparency in the sector, the Ministry has
continued to update the public through publication of the Country’s petroleum resources
through Annual Resource Reports, among others.
This report is an abridged version of the Financial Year 2019/2020’s Annual Resource
Report on the Country’s annual petroleum resources, reserves and prospective resources
estimates together with ongoing exploration efforts to establish additional resources.
The petroleum resource base volume in the Country is estimated at 6.0 Bbbls, with 1.4
Bbbl recoverable. Gas volumes have been estimated at 329 Bcf of non-associated gas
and 198 Bcf of dissolved gas, all in 21 oil and gas discoveries.
Contingent resources make up about 230.45 MMbbl of which, 31.6 MMbbl is under
Development Pending, 198.45 MMbbls is under Development on Hold and 0.4 MMbbl is
under Development Unclarified.
Unrecoverable resources volume attributed to hydrocarbons found within thin reservoir
units of the fields currently earmarked for production which are not accessible by current
technology have been estimated at about 208 MMbbl. This represents 3% of the Total
STOIIP.
Reserves in the Albertine graben are currently estimated to be 1,075 MMbbl of oil at P50.
This volume is attributed to the Kingfisher, Kigogole, Nsoga, Kasamene, Wahrindi, Jobi-
Rii, Gunya and Ngiri fields which have had the Field Development Plans updated following
the Front-End Engineering Design (FEED).
Polymer flood and water flood (EOR) methods have been considered during production.
The incremental volumes of oil from EOR through implementation of a polymer flood is
currently being assessed. International Oil Companies (IOC’s) suggest an incremental
recovery in the range of 3-10%, which translates to about 232 MMbbls. This accounts for
4% of the Total STOIIP.
To further establish additional volumes and add to the current reserves, prospective
resources within undrilled prospects in the Albertine Graben amounting to approximate
867.5 MMbbls have been established by the Department through detailed resource
assessment and basin analysis studies. In addition, Geophysical, Geological and
Geochemical (GGG) surveys have been undertaken in the Moroto-Kadam basin.
Approximately 4000 Km2 of Geological and Geochemical data have been acquired while
over 788 line- Km of Geophysical data have been acquired in the area. A petroleum
working system has been confirmed, as exhibited by the presence of an oil seepage and

i
reservoir rocks in the area. The work so far covered represents about 71% of the entire
Moroto-Kadam basin.
Definitive exploration is being undertaken by licensed oil companies namely; Armour
Energy Limited over Kanywataba Exploration Area and Oranto Petroleum Limited over the
Ngassa Shallow and Deep Plays. It is expected that more companies will be licensed at
the end of the ongoing Second Licensing Round to undertake further exploration in the
country.

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 TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................. i
1.0 INTRODUCTION .................................................................................................................. 1
2.0 RESOURCES ....................................................................................................................... 2
2.1 Oil Resources .................................................................................................................... 5
2.2 Gas Resources ................................................................................................................ 12
3.0 ONGOING ACTIVITIES ...................................................................................................... 13
3.1 Reservoir Optimization studies ........................................................................................ 13
3.2 Resource Assessment ..................................................................................................... 13
3.3 Exploration in Moroto-Kadam basin ................................................................................. 13
3.4 Exploration in Ngassa and Kanywataba Areas ................................................................ 13
3.5 The Second licensing round ............................................................................................ 14
4.0 CONCLUSION .................................................................................................................... 14

LIST OF FIGURES
Figure 1: Map showing discoveries in the Albertine Graben ....................................................... 3
Figure 2: Breakdown of total risked recoverable hydrocarbon volumes in the Albertine Graben . 5
Figure 3: Map showing Prospects in the Albertine Graben ....................................................... 10
Figure 4: Recovery Factor of Water Flood vs Polymer Flood (Source: IOC Reports) ............... 12

LIST OF TABLES
Table 1: Petroleum Discoveries in the Albertine Graben ......................................................................... 2
Table 2: Criteria for choice of risk factor .................................................................................................. 4
Table 3: Total risked hydrocarbon volumes in the Albertine graben as at December 2020 ..................... 5
Table 4: Breakdown of Reserves in the Albertine Graben ....................................................................... 6
Table 5: Breakdown of Development Pending resources in the Albertine Graben. ................................. 7
Table 6: Development on Hold resources in the different fields in the Albertine Graben ......................... 7
Table 7: Breakdown of Development Not Viable resources in the Albertine Graben ............................... 9
Table 8: Prospective Resources in the Albertine Graben Sub-Basins. .................................................. 10
Table 9: Non-Associated Gas Volumes discovered in the Albert Graben .............................................. 12

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 ACRONYM

AEL – Armour Energy Limited

Bbbl – Billion barrels
Bcf – Billion cubic feet
bopd – Barrels of Oil Per Day
CA – Contract Area
CNOOC – China National Offshore Oil Corporation
CPF – Central Processing Facilities
CO2 – Carbon dioxide
CUL – CNOOC Uganda Limited
EA1 – Exploration Area 1
EA2 - Exploration Area 2
EA3A – Exploration Area 3A
EOR – Enhanced Oil Recovery
FDP – Field Development Plan
FEED – Front End Engineering Design
FID – Final Investment Decision
GIIP – Gas Initially In Place
GIIP-Boe – Barrels of oil equivalent of Gas Initially In Place
GIIP-FREE – Free Gas Initially In Place
KFDA – Kingfisher Development Area
Line-km - Line Kilometres
Mbbl – Thousand barrels
Mboe – Thousand barrels oil equivalent
MMbbl – Million barrels
MMboe – Million barrels oil equivalent
OPL – Oranto Petroleum Limited
PEDPD – Petroleum Exploration, Development and Production Department
PL – Production License
PRMS – Petroleum Resources Management System
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PRR – Petroleum Reservoir Report
PSA - Production Sharing Agreement
REC-Boe - Barrels of oil equivalent of Recoverable Free Gas
REC-FREE -Recoverable Free Gas
SCF – Standards Cubic Feet
SPE – Society of Petroleum Engineers
STB – Stock Tank Barrels
STOIIP – Stock Tank Oil Initially in Place
TEPU – Total E&P Uganda B.V.
TUOP – Tullow Uganda Operations Pty Limited
UNOC – Uganda National Oil Company

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 1.0 INTRODUCTION

In line with the Petroleum (Exploration, Development and Production) Act, 2013, the
Petroleum Directorate is expected to among others carry out annual resource estimation
for each of the discoveries in the country with the objective of facilitating the Government’s
reporting of the oil and gas resources in the country and quality checking resource
estimates reported by licensed oil operators. The resources are assessed and reported
on an annual basis as per the Petroleum Regulations. The reporting also covers an
assessment of petroleum resources in the areas that are not under license and
prospective areas such as the Moroto-Kadam basin.

For purposes of accurate estimation and reporting of resources, the Directorate adopted
the industry standard, Society of Petroleum Engineers-Petroleum Resources
Management System (SPE-PRMS), which is one of the widely used industry standard
systems for estimating and reporting of petroleum resources. The resource classes
reported within this system include both discovered (reserves and contingent resources)
and undiscovered (prospective resources). The annual resource report is intended for
publication as a public document.

There are four (4) upstream oil and gas operators currently licensed in the country
namely;
1. Total E&P Uganda B.V.(TEPU) operating Production Licenses under the EA-1
PSA, named as Contract Area 1 (CA-1) 1) Production Licenses under EA2 PSA,
named Contract Area 2 (CA2);
2. CNOOC Uganda Limited (CUL) operating the Kingfisher Development Area
(KFDA) or Contract Area 3 (CA3);
3. Armour Energy Uganda Limited operating Kanywataba License Area; and
4. Oranto Petroleum Uganda Limited operating both Ngassa Shallow and Deep plays.

These licensees are required to submit data and forecasts of petroleum resources in the
fields, discoveries, and prospects in the areas they are licensed to operate in, on an annual
basis using the PRMS reporting system.

This report is therefore based on both the licensees’ and Petroleum Exploration
Development and Production Department’s (PEDPD) independent assessments. The
report presents total discovered resources, reserves and prospective resources in the
Albertine graben. In addition, the report includes a reconciliation of the reported petroleum
reserves and resource estimates for the current year against the corresponding estimates
for the previous year, along with an explanation of any changes between the two.

1
2.0 RESOURCES

Resources refer to all quantities of petroleum (recoverable and unrecoverable) naturally

occurring on or within the earth’s crust, discovered and undiscovered. It also includes all
types of petroleum (conventional or unconventional). Currently, the resource base of the
Country is estimated In Place volume of 6.0 Bbbls, with1.4 Bbbl recoverable. The
recoverable gas volumes have been estimated at 329 Bcf of non-associated gas (and gas
cap) gas and 198 Bcf of dissolved gas, in 21 oil and gas discoveries (Figure 1 and Table
1 below).

Table 1: Petroleum Discoveries in the Albertine Graben

No. Discovery Hydrocarbon Type Date of Discovery
1. Turaco Gas (80% CO2) Sep-2002
2. Mputa Oil Jan-2006
3. Waraga Oil Feb-2006
4. Kingfisher Oil Aug-2006
5. Nzizi Oil and Gas Nov-2006
6. Ngassa Oil and Gas Nov-2007
7. Taitai Oil and Gas May-2008
8. Ngege Oil and Gas Jun-2008
9. Karuka Oil Jul-2008
10. Kasamene Oil and Gas Jul-2008
11. Kigogole Oil and Gas Aug-2008
12. Ngiri Oil and Gas Sep-2008
13. Jobi Oil and Gas Nov-2008
14. Rii Oil Jan-2009
15. Nsoga Oil and Gas Apr-2009
16. Wahrindi Oil Jun-2009
17. Ngara Oil Jul-2009
18. Mpyo Oil May-2010
19. Jobi-East Oil Apr-2011
20. Gunya Oil and Gas Jun-2011
21. Lyec Oil Jan-2013

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 Figure 1: Map showing discoveries in the Albertine Graben

Previously, the total volume reported for the Albertine Graben had been aggregated
without regard for project maturity. This was mainly because development projects had
not yet been defined for the resources within most of the fields. Appraisal for most of the
fields has now been completed and development projects have been largely defined. The
resources in these fields have therefore been classified based on their level of maturity
and according to SPE-PRMS.

A key strength of using a project-based system like SPE-PRMS is that it encourages the
consideration of all possible technically feasible opportunities to maximize recovery even
3
though some projects may not be economically viable when initially evaluated. These
projects are still part of the portfolio and identifying and classifying them ensures that they
remain visible as potential investment opportunities for the future.

In order to aggregate the resources within the different classes, a risk factor whose criteria
has been defined as shown in Table 2, has been applied. It will now be possible to track
the progress of resources development within the different classes.

Table 2: Criteria for choice of risk factor

Class Risk Factor Criteria
Reserves 1.00 The hydrocarbons are technically and commercially
recoverable.
Development Pending 0.90 The main contingency remaining is award of a production
license.
Development on Hold 0.80 The projects depend on the outcomes of previous phases or
collection of additional data. It is therefore more likely than
not, that the project will proceed.
Development 0.70 Definition of a project depends on further appraisal. However,
Unclarified it is most likely that these volumes will become commercial.
Prospective 0.60 Definition of a project depends on discovery of commercial
resources.

Improved Recovery 0.50 Definition of a project depends on further studies/pilot project.

Potential There is a 50% chance that these volumes will become
commercial.
Development Not 0.00 Known resources, but no chance of commerciality.
Viable
Undeveloped STOIIP 0.00 Known resources, but no chance of commerciality.

The risk factor has been decided based on chance of commerciality within a given class
as follows. Commerciality is defined by;
i. Reasonable time table for development;
ii. Reasonable assessment of future economics;
iii. Reasonable expectation that there will be a market;
iv. Production and transportation facilities are available or can be made available; and
v. Legal, contractual, environmental and other social-economic concerns allow for
implementation of the project.
Table 3 and Figure 2 below show a breakdown of risked resources within the different
classes in the Albertine Graben.

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 Table 3: Total risked hydrocarbon volumes in the Albertine graben as at December 2020

Un risked Resource Risk Risked Resource

Class (MMBBL) Factor (MMBBL) Definition
Low Mid High Mid Mid
Reserves 713 1114 1475 1.0 1114 80%
Development Pending 13 32 41 0.9 28 2%
Development on hold 88 169 285 0.8 135 10%
Development unclarified 0 0 1 0.7 0 0%
Improved recovery Potential 126 232 289 0.5 116 8%
Development Not Viable 2 10 37 0 0 0%
Prospective resources 1 2 4 0.6 1 0%
Total 944 1559 2130 1395 100%

Figure 2: Breakdown of total risked recoverable hydrocarbon volumes in the Albertine Graben

2.1 Oil Resources

Oil resources in the Albertine graben have been classified into reserves, contingent
resources and prospective resources.

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2.1.1 Reserves

According to SPE-PRMS, reserves are those quantities of petroleum anticipated to be

commercially recoverable by application of development projects to known accumulations
from a given date forward under defined conditions.

In the Albertine Graben therefore, Reserves include the recoverable petroleum resources
in fields for which the field development planning has been approved, production licenses
awarded and Front-End Engineering Design (FEED) studies have been undertaken. The
fields are only be pending Final Investment Decision (FID) before being put on production.

Reserves in the Albertine graben are currently estimated at 1,075 MMbbl, and this volume
is attributed to; the Kingfisher, Kigogole, Nsoga, Kasamene, Wahrindi, Jobi- Rii, Gunya
and Ngiri fields. Although Mputa, Nzizi, Waraga, Ngara and Ngege have production
Licences, the recoverable resources therein are not considered reserves because they
will only be brought on stream later after First Oil. The reserves (Table 4 below) make up
about 80% of the total risked recoverable volume in the Albertine graben.

Table 4: Breakdown of Reserves in the Albertine Graben

STOIIP (MMbbl) Reserves (MMbbl)
Field %ge of Reserves
Low Mid High Low Mid High
Kingfisher 407 570 741 128 186 253 32.5% 16.7%
Mputa 80 104 140 9 10 13 9.9%
Nzizi 16 32 54 0 1 1 2.5%
Waraga 88 96 104 19 23 26 24.0%
Kigogole 267 372 436 56 94 120 25.3%
Nsoga 251 384 503 56 76 101 19.8% 24.3%
Ngara 11 16 33 2 3 4 16.3%
Ngege 263 317 372 2 2 5 0.8%
Kasamene 139 147 167 50 57 67 38.8%
Wahrindi 17 28 46 0 5 8 17.9%
Jobi Rii 1,215 1,698 2,296 159 308 424 18.1%
Ngiri 609 756 886 161 245 325 32.4% 59.0%
Gunya 361 465 583 72 104 128 22.4%
TOTAL 3,725 4,985 6,362 713 1,114 1,475 22.3% 100%
*Total reserves are 1075MMbbls exclusive of the 39MMbbls from Mputa, Nzizi, Waraga,Ngara and Ngege fields.

2.1.2 Contingent Resources

These are quantities of petroleum estimated, as of a given date, to be potentially

recoverable from known accumulations by application of development projects but which
6
are not currently considered to be commercially recoverable due to one or more
contingencies. If it is clear that these cannot be overcome, the resources need to be
assigned to the Unrecoverable class. Contingent resources are further subdivided into
Development Pending, Development on Hold, Development Unclarified and Development
not Viable. As presented in Table 3 above, the contingent resources make up about 12%
of the total risked recoverable hydrocarbon volumes in the Albertine graben.

a) Development Pending
These are resources that have been planned for in the first phase of development of a
given field and whose development is not dependent upon any outcomes from previous
phases of development. The main contingency currently associated with these volumes is
approval of an FDP. In our case these include resources attributed to Jobi-East, Mpyo
and Lyec fields, with a total recoverable resource estimated at 31.6 MMbbl (Table 5).

b) Development on Hold
In the Albertine graben, there are projects that are considered to have at least a
reasonable chance of commerciality but where there are major technical contingencies
such as dependency of a given phase of development on the successful outcome of an
earlier phase and further investigations will be carried out during development drilling to
either prove hydrocarbon volumes or reduce specific remaining uncertainties before
development of resources can be made firm. About 198.45 MMbbls of the resources fall
under this category and is attributed to certain reservoir units and horizons in Mpyo, Jobi-
East, Gunya, Ngiri, Jobi-Rii etc. (Table 6).

Table 5: Breakdown of Development Pending resources in the Albertine Graben.

%ge of Development-
Field STOIIP (MMbbl) Development-Pending (MMbbl) Pending

Low Mid High Low Mid High

Jobi East 495 698 1,020 11.8 29.5 37.7 4.2%

98.9%
Mpyo 108 179 257 1.1 1.8 2.4 1.0%
1.2%
Lyec 9 14 30 0.2 0.36 0.5 2.6%

TOTAL 612 891 1,307 13.1 31.66 40.6 3.6% 100%

Table 6: Development on Hold resources in the different fields in the Albertine Graben
Field / STOIIP (MMbbl) Development-On Hold (MMbbl) %ge of
Reservoir Unit
Discovery Low Mid High Low Mid High Undeveloped
Mputa 4 H20 &
H15 2.5 6.1 6
Mputa Mputa 1&3 H20 10.2% 9%
80 104 140
& H15 3.7 3.2 3.8
Mputa H10 0.7 1.2 1.1
7
 Mputa H25 0 0.1 0.2
Nzizi 2 H10 &
Nzizi H30; & N3 H10 0.0%
16 32 54
(Add wells) 0 0 0.2
Kigogole 0.0%
Kigogole 4 267 372 436 0 0 13.4
Nsoga 5 &
Nsoga 0.0%
others 251 384 503 0 0 17.1
Ngege Phase 2
Ngege 2& 7
H30U, H30L &
H25 0 6.3 13.7
Ngege 2.0%
Ngege Phase 3 263 317 372
Ngege 2& 7
H30U, H30L &
H26 +Ngege-1 0 0 4.3
Kasamene Kasamene H15 139 147 167 0.2 0.2 0.2 0.1%
JobiRii Main +
North H30U 11 22 27
JobiRii Main
H17 & H15L 6 12 16
JobiRii South
Jobi Rii 3.1%
(Rii-2 H30 & 1,215 1,698 2,296
H27) 4 7 11
JobiRii South
(Far South
H30,H27&H25) 7 11 16
Ngiri West H30 1 3 8
Ngiri Ngiri Terrace 2.4%
609 756 886
North Extension 6 15 21 91%
Gunya H30
Gunya 12.3%
Gunya Deep 361 465 583 33 57 78
JE1/6 H30/15 1.7 3.5 4.6
JE-2A 7 11 18
JE-5/7 5 8 13.5
Jobi East JobiEast 6.1%
495 698 1,020
JE3/3A H30,H15 0.4 0.8 1.1
JobiEast H25 &
H27 (36P,12I) 12 19 32
Mpyo 3 H30 0 9 13
Mpyo Mpyo 1 H30/25 1.4 2.3 3.1 6.7%
108 179 257
Mpyo 5 H30/25 0.46 0.75 1.02
3.9%
TOTAL 3,804 5,152 6,714 103.06 198.45 323.32 100%

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c) Development Unclarified

These are resources that are still under evaluation (e.g. a recent discovery) or require
significant further appraisal to clarify the potential for development, and where the
contingencies have yet to be fully defined. In such cases, the chance of commerciality
may be difficult to assess with any confidence. The resources classified as Development
Unclarified are estimated at 0.4 MMbbl and are negligible compared to the total discovered
recoverable hydrocarbon volume in the Albertine Graben. This volume is attributed to the
Mpyo-4 H30 and Mpyo-Central H27/25 panels in Mpyo field, where additional data is
required to ascertain their potential.

d) Development Not Viable

These resources have been assessed, as of a given date, as being of insufficient potential
to warrant any further appraisal activities or any direct efforts to remove commercial
contingencies. Projects in this sub-class would be expected to have a low chance of
commerciality.

Three sets of discoveries; Turaco (with 80% CO2 content), Taitai-Karuka and Ngassa were
considered sub-commercial by the respective licensees and relinquished back to
Government in 2004, 2008 and 2014 respectively (Table 7).

Table 7: Breakdown of Development Not Viable resources in the Albertine Graben

%ge of
Development-Not
Discovery STOIIP (MMbbl) Development-Not Viable (MMbbl) Viable
Low Mid High Low Mid High
Ngassa 15.2 46.8 112.2 2.3 9.4 33.7 20.0% 95%
Taitai 0.5 6.0 14.8 0.0 0.5 1.8 7.9% 5%
Karuka 0.1 0.3 4.0 0.0 0.1 1.2 20.0% 1%

TOTAL 15.8 53.2 131.0 2.3 9.9 36.6 18.6% 100%

e) Unrecoverable Resources / Undeveloped STOIIP

This is the portion of discovered petroleum initially-in-Place that is estimated, as of a given
date, not to be recoverable. A portion of these quantities may become recoverable in future
as commercial circumstances change, technological developments occur, or additional
data is acquired. This volume has been estimated at about 208 MMbbl, which equates to
about 3% of the Total STOIIP.

2.1.3 Prospective Resources

These are quantities of petroleum that are estimated, as of a given date, to be potentially
recoverable from the yet to be drilled accumulations. Several prospects of this category
have been identified in the Albertine Graben as shown in Figure 3 and the prospective
volumes associated to them are shown in Table 8 below. Additional work is being

9
undertaken by the Directorate of Petroleum to further refine and update all the prospective
resources in the Albertine Graben currently amounting to approximately 867.5 MMbbls.

Figure 3: Map showing Prospects in the Albertine Graben

Table 8: Prospective Resources in the Albertine Graben Sub-Basins.

Area
No. Basin Prospect
(Km2) STOIIP (MMbl)
Risk Resources
P50
factor (MMbl)
1 Mvule 10.7 88 0.15 13.2
2 Rhino Iti 5.97 45 0.15 6.8
3 Camp Avivi 3.3 35 0.15 5.3
4 Sambia 6.3 40 0.15 6.0
5 Riwu 32.4 57 0.15 8.6
6 Raa 13.5 55 0.15 8.3
7 Til 17.6 210 0.15 31.5
8 Ondyek 8.4 53 0.2 10.6
9 Pakwach Alwala 2.5 11 0.2 2.2
10 Mparaki 2.3 24 0.2 4.8
11 Okuma 12.3 59 0.2 11.8
12 Omuka 7 71 0.2 14.2
13 Pura 25.9 24 0.2 4.8
10
 14 Bbegeri 4.9 85 0.2 17.0
15 Awaka 21 26 0.2 5.2
16 Karakogere 5 25 0.2 5.0
17 Ntera 10 76 0.2 15.2
N. L. Albert
18 Kasuruban 14.7 25 0.2 5.0
19 Mtonta 4.5 10 0.2 2.0
20 Lanya 5.8 17 0.2 3.4
21 Kisinja 75.6 30 0.2 6.0
22 Pelican 28 0.2 5.6
23 Kanywataba 25.7 43 0.2 8.6
Kingfisher-
S. L. Albert 76 1240 0.32 396.8
West
24 Pelican-W 5.9 21 0.2 4.2
Crane 24 37 0.2 7.4
Ngambwa 2 3 0.2 0.6
27 Saddle Bill 12 763 0.15 114.5
Turaco 11.5 464 0.2 92.8
Ibis 2 37 0.2 7.4
Semiliki
Squacco 1.5 28 0.2 5.6
Coucal 20.6 38.6 0.22 8.5
28 Cuckoo 2 19 0.2 3.8
N.L
30 Nkobe 3 9 0.22 2.0
Edward
31 S.L. Ngaji 40 68 0.22 15.0
32 Edward Mpundu 20 37 0.22 8.1
TOTAL 535.87 3901.6 7 867.522

2.1.4 Enhanced Oil Recovery (EOR)

Enhanced Recovery is the extraction of additional petroleum beyond Primary Recovery,

from naturally occurring reservoirs by supplementing the natural forces in the reservoir. It
includes secondary processes, tertiary processes and any other means of supplementing
natural reservoir recovery processes.

Polymer flood and water flood are the EOR methods that have been considered for fields
in the Albertine graben. The potential for incremental volumes of oil from enhanced oil
recovery through implementation of a polymer flood is currently being assessed.
Laboratory experiments carried out on Kingfisher field by CUL; Ngiri, Jobi-Rii and Gunya
fields by TEPU and Kasamene, Wahrindi, Mputa and Waraga fields by TUOP indicated
an incremental recovery in the range of 3-10%, which translates to about 232 MMbbls.
This accounts for 4% of the total resource volume.

Further analysis, assessment of field performance under EOR and implementation of a

pilot will be required prior to execution of a full field EOR project. A comparison between
water flood and polymer flood presented by the Licensees is shown in Figure 4 below with
Polymer flooding having higher recovery factors.

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 Figure 4: Recovery Factor of Water Flood vs Polymer Flood (Source: IOC Reports)

2.2 Gas Resources

Out of the 21 discoveries so far made, 13 fields namely; Turaco, Jobi-Rii, Ngiri, Ngege,
Nzizi, Kasamene, Wahrindi, Jobi-East, Nsoga, Gunya, Taitai, Kigogole and Ngassa
encountered gas. Two types of gas resources are existent in the Albertine Graben;
associated gas (dissolved gas) and non-associated gas (free gas). Most of the gas in the
Albertine Graben is non-associated gas.

2.2.1 Non-Associated Gas / Free gas

Gas cap volumes will not be produced until later in the production life of the field, due to
its vital role in providing pressure support during oil production for oil and gas reservoirs.
It should be noted that the plans for developing the gas reservoirs are yet to be undertaken.
Approximately 329 Bcf of non-associated gas has been estimated in the Albertine Graben
and a detailed breakdown of these gas resources is given in Table 6 below.

Table 9: Non-Associated Gas Volumes discovered in the Albert Graben

Field / Discovery GIIP-FREE Recovery Factor (%) REC-FREE GIIP-Boe REC-Boe
Bcf Bcf MMbbl MMbbl
Nzizi 14.6 55 8.0 2.6 1.4
Kigogole 0.2 80 0.1 0.0 0.0
Nsoga 2.6 60 1.6 0.5 0.3
Ngege 2.8 61 1.7 0.5 0.3
Kasamene 7.6 85 6.5 1.4 1.2
Ngassa 0.9 80 0.7 0.2 0.1
Taitai 1.3 80 1.0 0.2 0.2
Turaco *342.0 80 *273.0 61.6 49.1
Jobi-Rii 32.0 75 24.0 5.8 4.3
Ngiri 16.0 68 10.9 2.9 2.0
Gunya 1.9 63 1.2 0.3 0.2
TOTAL 422 328.7 76 59
*Contains 80 % CO2

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2.2.2 Associated Gas
For the associated gas, the amount of gas available is dependent on the Gas Oil Ratio
(GOR) and using the Gas Oil Ratios from the various fields, 198 BcF of dissolved gas
has been estimated. The amount of associated gas produced will entirely depend on the
oil production.

3.0 ONGOING ACTIVITIES

3.1 Reservoir Optimization studies

Reservoir optimization studies were undertaken by TEPU, CUL and TUOP in 2019 in
close supervision by Government and a reservoir model optimization report was
submitted by the Oil companies. Partial review and evaluation of the models has been
undertaken by PEDPD however, more detailed works is still ongoing. This was aimed to
de-risk the prospects and associated reservoirs.

And on this basis, there was a slight change in field reserves under development such as
Gunya, Ngiri, Jobi-Rii and Kigogole fields.

3.2 Resource Assessment

Following the announcement of the Second licensing round by the Minister in May 2019,
PEDPD embarked on a detailed and independent resource assessment of all the blocks
under the Second licensing round. An understanding of the resources within the blocks on
offer will enable effective negotiation of Production Sharing Agreements in regard to work
programs proposed by successful bidders. In the reporting period, progress has been
made on the Omuka block.

3.3 Exploration in Moroto-Kadam basin

To date, ten Geophysical, Geological and Geochemical (GGG) surveys have been
undertaken in the Moroto Kadam basin. Approximately 4000 Km2 of Geological and
Geochemical data while over 788 line-km of Geophysical data have been acquired. This
represents about 71% of the entire Moroto Kadam basin. The work undertaken has
established that there is an existing working petroleum system (mature source rock,
migration pathway, reservoir rock, trap and seal) and oil seepage has also been
established which further proves a working petroleum system in the basin.

3.4 Exploration in Ngassa and Kanywataba Areas

Armour Energy Uganda Limited is undertaking exploration in Kanywataba License Area,
while Oranto Petroleum Uganda Limited is undertaking exploration in Ngassa Shallow and
Deep plays.

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3.5 The Second licensing round
The Government of the Republic of Uganda through the Ministry of Energy and Mineral
Development announced Uganda's Second Licensing Round, targetingfive (5) prolific
Exploration Blocks namely: Avivi, Omuka, Kasuruban, Turaco and Ngaji. Four (4)
companies namely; the Uganda National Oil Company (UNOC), Total E&P Uganda
B.V.(TEPU), DGR Energy and PetroAfrik Energy resources East Africa Ltd were
prequalified. The companies are currently evaluating available data in the respective
blocks with a view of submitting their bid applications. Government will negotiate PSAs
with successful bidders and grant exploration licenses to companies upon successful
negotiation and approval by Cabinet for the grant of exploration licenses by December
2021.

4.0 CONCLUSION

The resource assessment so far done indicates an estimated In Place Volume of 6.0 Bbbls
of oil, of which 1.4 Bbbl are recoverable. The recoverable gas volumes have been
estimated at 329 Bcf of non-associated gas (including gas caps) and 198 Bcf of
associated/dissolved gas. These estimates have a bearing on the planning of the projects
to commercialize the oil and gas resources in the country.

Considering that the licensed area in the Albertine Graben is approximately 10%, more
work remains to be done to further evaluate prospective resources and frontier basins in
the country. Prospective resources if confirmed and brought to production will be useful in
prolonging the production plateau of the current projected production profile.

Additional work to map and evaluate more prospective resources is currently being
undertaken by the Directorate of Petroleum. In addition, with more data that will be
acquired during the development and production phases over the already discovered
fields, the volume estimates are subject to change and the Directorate will continue to
update and report the estimates with due consideration of the changes.

Due to the shallow unconsolidated nature of formations in of some of the fields, the
licensees have indicated that it will not be possible to apply pressure maintenance and
EOR techniques in some fields hence resulting into very low recovery factors. The
Directorate is seeking ways to undertake studies regarding injectivity and perhaps suggest
ways of improving recovery from these fields.

With the sensitive nature of the environment in which these fields lie, the proposed
development projects must ensure that there is minimal impact on the environment. The
licensees together with Government are engaging in discussions to ensure that optimal

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technologies are deployed in order to optimally extract the resources without
compromising the environment.

As the country enters into the development and production phase, a clear tracking of the
resource estimates by both operators and Government is critical since it has a direct
bearing on the economics of the projects plus the sharing of the revenues that will be
generated from the production of the resource.

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REFERENCES

1. CNOOC Uganda Ltd., October 2016. Kingfisher Development Area Petroleum

resource report (Unpublished Report).

2. CNOOC Uganda Ltd., October 2019. Kingfisher Development Area Petroleum

resource report (Unpublished Report).

3. Ling, K., & Shen, Z., 2011: Effects of Fluid and Rock Properties on Reserves
Estimation. Society of Petroleum Engineers, doi: 10.2118/148717-MS.

4. Morley C. K., 1999: Geoscience of the Rift Systems-Evolution of East Africa. AAPG
studies in Geology, No.44, 131-150.

5. Ross, J. G., 1997: The Philosophy of Reserve Estimation. Society of Petroleum

Engineers, doi: 10.2118/37960-MS.

6. Society of Petroleum Engineers, February, 2007: SPE Approved Standards

Pertaining to the Estimating and Auditing of Oil and Gas Reserves.

7. Society of Petroleum Engineers, November 2011: Guidelines for Application of the

Petroleum Resources Management System.

8. Total E & P Uganda, October 2016: Exploration Area 1 Petroleum resource reports
(Unpublished Report).

9. Total E & P Uganda, October 2019: Exploration Area 1 Petroleum resource reports
(Unpublished Report).

10. Tullow Uganda Operations Pty Ltd., October 2016: Exploration Area 2 Petroleum
resource reports (Unpublished Report).

11. Tullow Uganda Operations Pty Ltd., October 2019: Exploration Area 2 Petroleum
resource reports (Unpublished Report).

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