The Ugandan government has extended Oranto’s oil block license for two additional years, covering the Ngassa Deep and Ngassa Shallow exploration areas in Hoima and Kikuube districts and Centurion Law Group has successfully advised Oranto Petroleum as regards to the renewal of its oil exploration license in Uganda.
This extension, effective from December 2023, allows Oranto to continue its exploration and appraisal drilling activities in these promising blocks. Oranto was granted a two-year extension in 2021 after arguing that its activities in the previous year were disrupted by the coronavirus. The extension of the license is a testament to Oranto’s commitment to exploring and developing the oil and gas potential in Uganda.
The Nigeria indigenous E&P Company was issued two exploration licences in 2017 which comprise shallow and deep areas of the 410 square kilometre Ngassa block. These licences were part of a production sharing agreement signed with the government, which included two exploration periods of two years each.
The Ngassa exploration block is located in Exploration Area 2, which was initially licensed to the British oil company Tullow. It was returned to the government in 2011. Ngassa consists of two deviated wells drilled onshore between 2007 and 2009 to access the oil and gas reservoirs under Lake Albert. A significant portion of the block remains untested, according to the Petroleum Authority.
Oranto has conducted 2D seismic exploration of 326 square kilometres of the block, reprocessed existing vintage seismic data, completed a petrophysical study of the two wells, conducted a drilling solution study for Lake Albert, and held a series of stakeholder meetings and workshops.
The company intends to drill an exploration well on the block to decrease uncertainty regarding the petroleum prospectivity of its concession interest. If viable reserves are discovered, the government will reimburse the company for its investment expenses.
The Centurion team was led by Zion Adeoye (Partner) and Gari Matarirano (Senior Counsel), provided comprehensive legal and advisory services to Oranto, ensuring a smooth process in the license renewal negotiations with the Ugandan government. Their team’s expertise in energy law and deep understanding of the African oil and gas sector were instrumental in this achievement.
