Oranto Petroleum Limited’s oil exploration licences in the Albertine region of Uganda have officially expired, raising concerns within the oil and gas sector. Oranto Petroleum Limited (OPL) had been operating under two licenses for the Ngassa Shallow and Deep Play in Kikuube district within the Albertine Graben since October 17, 2017. However, the licenses expired at the end of September, and their renewal, as mandated by the Petroleum (Exploration, Development, and Production) Act of 2013, remains uncertain.
Within the Ministry of Energy and the Petroleum Authority of Uganda, which regulates the sector, mixed reactions have emerged regarding the expiration of Oranto’s licenses. Some have questioned the financial capacity of Oranto Petroleum Limited, associated with Nigerian businessman Arthur Eze, to continue exploration in Lake Albert. Eze also serves as the CEO of Atlas Oranto Petroleum, Nigeria’s largest privately-owned petroleum exploration and production company.
There have been speculations that the company might have faced challenges in its operational area, leading to questions about its compliance with the Petroleum (Exploration, Development, and Production) Act of 2013 regarding license renewal.
The law stipulates that a petroleum exploration license holder must apply for renewal at least ninety days before the license’s expiration, although the Minister may accept applications made later, but not after the expiration date.
Efforts to reach Engineer Irene Batebe and the Ministry of Energy’s Permanent Secretary to inquire about Oranto Petroleum’s status were unsuccessful.
Honey Malinga, Acting Director of the Directorate of Petroleum at the Ministry of Energy and Mineral Development, disclosed that Oranto had submitted work programs to the ministry for review, but he didn’t provide further details or the timeline for the review process.
Oranto Petroleum Limited (OPL) was one of the international oil companies chosen during the first competitive licensing round for six blocks in the Albertine Graben, alongside Armour Energy Limited of Australia. While there have been doubts about Oranto’s performance, updated information from the Petroleum Authority of Uganda indicates that the company acquired 326 line kilometers of new 2D seismic data and completed a drilling solution for Lake Albert.
Stratigraphic licenses granted to Oranto Petroleum were previously hailed as a significant achievement for the country by then-Minister of Energy Engineer Irene Muloni. Stratigraphic licensing is designed to ensure comprehensive exploration of acreage, especially shallow reservoirs that may contain gas, which companies might otherwise neglect in favor of deep oil reservoirs.
During the signing of licenses and Production-Sharing Agreements (PSAs), Prince Eng. Arthur Eze, the Chairman of Oranto Petroleum Ltd, expressed a commitment to substantial investment in Uganda by the company. Eze emphasized Oranto’s dedication to investment in the regions where it operates.
