NDR10 COUNTRY REPORT Presented By By Andrew Ochan Geologist, Petroleum Exploration and Production Dept, Ministry of Energy and Mineral Development Uganda Rio de Janeiro, Brazil 18 th March, 2011

2 NDR10 Country Report - Uganda A. INTRODUCTION The Albertine Graben Status of Licensing B. THE NDR Organization Available Data and oil and gas resources NDR Organisation Objectives of the NDR Legislation&Reporting Requirements Ongoing Projects Challenges Achievements Lessons Learned and Future Plans PRESENTATION OUTLINE

3 NDR10 Country Report - Uganda INTRODUCTION THE ALBERTINE GRABEN Abu Graben Afar Depression Aswa Shear zone Lake Malawi Lake Tanganyika Lake Albert Albertine Graben TanzanianCraton  The area with the highest potential for petroleum production in Uganda is the Albertine Graben  The Graben forms the northern most part of the Western arm of the East African Rift System  It is a Tertiary rift, 500 km long, averaging 45 km wide and 23,000 sq km (Ugandan part)

4 NDR10 Country Report - Uganda 4 STATUS OF LICENSING  Albertine Graben is currently sub- divided into 10 Exploration Areas (EAs)  5 active Production Sharing Agreements (PSAs)  Companies currently licensed are Tullow Oil, Neptune Petroleum and Dominion Petroleum  Tullow is finalising the process of farming down its interests to Total and CNOOC (33.33% each) taking into account Government participation INTRODUCTION

5 NDR10 Country Report - Uganda MINISTER MINISTER OF STATE FOR ENERGYMINISTER OF STATE FOR MINERAL DEVELOPMENT PERMANENT SECRETARY KILEMBE MINES RURAL ELECTRIFICATION AGENCY UGANDA ELECTRICITY BOARD UGANDA ELECTRICITY GENERATION Co. Ltd. UGANDA ELECTRICITY TRANSMISSION Co. Ltd UGANDA ELECTRICITY DISTRIBUTION Co. Ltd DIRECTORATE OF ENERGY AND MINERAL DEVELOPMENT (D/E&MD) FINANCE & ADMINISTRATION DEPARTMENT SECTORAL PLANNING/ POLICY ANALYSIS UNIT RESOURCE CENTRE ENERGY RESOURCES DEPARTMENT (ERD) PETROLEUM EXPLORATION & PRODUCTION DEPARTMENT GEOLOGICAL SURVEYS AND MINES DEPT. PETROLEUM SUPPLIES DEPARTMENT MEMD ORGANISATION

6 NDR10 Country Report - Uganda PEPD IN BRIEF  Petroleum Exploration and Production Department (PEPD) is a department in the Ministry of Energy and Mineral Development in Uganda  Formed in September 1991 from a Petroleum Unit under Geological Survey and Mines Department (GSMD)  Petroleum (Exploration and Production) Act, Chapter 150, Laws of Uganda 2000, vest upon PEPD the mandate to monitor and regulate upstream activities undertaken by oil companies  In the exploration, development and production of oil and gas resources, oil companies can participate in Uganda by entering into agreement (PSA) with Government ORGANISATION

7 NDR10 Country Report - Uganda   Promotion of petroleum exploration in the country   Monitor and regulate licensees undertaking petroleum exploration and production in the country   Acquire, process and interpret geophysical, geological and geochemical data with a view of assessing the country's petroleum potential   Initiate policy and legislation on petroleum exploration and development   Build national capacity in the field of petroleum exploration and development   Implement the National Oil and Gas Policy (2008) MAIN FUNCTIONS OF PEPD ORGANISATION

8 NDR10 Country Report - Uganda NEW INSTITUTIONS IN THE OFFING   Petroleum Authority of Uganda - Regulatory Body   Directorate of Petroleum in the Ministry responsible for oil and Gas - Policy and Licensing - Petroleum Data Mgt   National Oil Company - participate in petroleum operations ORGANISATION

9 NDR10 Country Report - Uganda AVAILABLE DATA Data TypeCoverage Geological Surface Mapping >10,000 sq km Aeromag&Aerogravity16,560 line km Ground/lake gravity and magnetic 10,500 line km Geological Surface Mapping data >10,000 sq km 2-D Seismic~6,000 line Km 3-D Seismic Well data51 wells

10 NDR10 Country Report - Uganda PETROLEUM RESOURCE POTENTIAL  18 oil and/or gas discoveries made to date  5 discoveries (Mputa, Kasamene, Kingfisher, Waraga & Nzizi) at FDP stage  Discovered resources currently estimated at ~ 2.5 billion bbls of oil equiv in place  Type of crude is API low sulphur, waxy crude, Pour point of ~40 degrees Celsius.  Excellent reservoir qualities with 20-30% porosities  Well flow rates in the range of 1,000 – 14,000 bopd indicative of good permeabilities

11 NDR10 Country Report - Uganda NDR ORGANISATION

12 NDR10 Country Report - Uganda  Protection and preservation of the country’s E&P data for the benefits of future generations;  Encouragement of exploration activity by making high quality data available quickly to potential investors; and,  To strengthen information sharing and exchange of E&P data among the various stakeholders. OBJECTIVES OF THE NDR

13 NDR10 Country Report - Uganda  Currently semi-permanent storage for:  Seismic data tapes  well data (reports, logs, CDs)  Rock (cores, cuttings, fluids)  Future plan for storage in a modern data centre  IT infrastructure includes various servers, LAN, Backup and recovery mechanisms:  Software: Desktop OS (windows), Geoscience and Mapping, MS office NDR INFRASTRUCTURE

14 NDR10 Country Report - Uganda  Petroleum Exploration and Production Act (1985)  Petroleum E&P Regulations (1993)  Production Sharing Contracts LEGISLATION/REPORTING REQUIREMENTS

15 NDR10 Country Report - Uganda Personnel   1 Geophysicist   4 Technicians ONGOING PROJECTS Hardware/Software  Tape Drives (IBM 3480E1A, 3490E, 3590E1A, STK 4280 Dual 3480 & Exabyte 8505)  Tape Cartridges  MAGMA Software Field Tape Copying & Transcription Commenced: Feb 2010

16 NDR10 Country Report - Uganda Task   Create run lists and copy raw seismic and support data from various media (3480, 3490, LT02, etc) onto computer hard disk   Carry out QC, reformatting and data header standardization measures to ensure the data conform to accepted industry standard   Security back-up onto external disks and servers   Transcription of data onto PEPD acceptable media i.e 3590 which guarantee reasonable level of data durability. ONGOING PROJECTS Output  96% of 3,114 tapes copied to disk, QC’ed and ready for transcription to IBM 3590 cartridges

17 NDR10 Country Report - Uganda ONGOING PROJECTS Crane MS Access Dbase Development Commenced: Feb 2010 Personnel: Various Status: 90% done, populating

18 NDR10 Country Report - Uganda  DM Structure is loosely defined  Lack of dedicated data management/IT personnel  Seismic data on various media with lack of reading capabilities  Lack of data submission guidelines  Storage facilities (buildings) and methods not conforming to industry standards  Naming conventions!  Funding CHALLENGES

19 NDR10 Country Report - Uganda  Improved IT infrastructure  Seismic data transcription to common media  Data backup solutions in the offing  Institutional Framework in offing with data management functions to be vested on the Petroleum Authority  New legislation being drafted to address data submission ACHIEVEMENTS

20 NDR10 Country Report - Uganda   Even for small amounts of data, careful planning is key   You need dedicated people on DM   Consideration to employ at least one dedicated IT Resource   Development of data submission guidelines   Complete tape transcription   Current law being updated to clearly define DM roles   Construction of a modern data centre   Consideration to scan all hard copy data   Complete Crane Dbase devt, make data avail on portal/web LESSONS LEARNED AND FUTURE PLANS