By Elias Biryabarema
KAMPALA, March 2 (Reuters) - Uganda has received seven bids
for six oil exploration blocks offered in a licensing round and
it plans to chose the winners and sign deals by the end of June,
the Ministry of Energy and Mineral Development said on
Wednesday.
Oil deposits were discovered in Uganda along its border with
Democratic Republic of Congo (DRC) in 2006 but delays in
erecting the necessary infrastructure, tax wrangles and the drop
in the oil price have delayed the start of production.
The blocks on offer are in the Albertine rift basin, close
to the border with DRC, where commercial oil deposits are
estimated by government geologists to total 6 billion barrels.
The six blocks are in Ngassa, Tai Tai & Karuka, Mvule,
Turaco, Kanywantaba and Ngaji. Ugandan officials say they are
targeting commercial oil production by 2018 at the earliest.
Also on Wednesday, Uganda and Tanzania announced they are
planning to build a pipeline from Ugandan oil fields to the
Tanzanian coast to help export Uganda's crude once production
starts.
Uganda announced its first competitive bidding round for the
six exploration blocks, covering a total of 3,000 square
kilometres, in February last year. Bidding documents were issued
to 16 oil firms in October.
In the statement, the Ministry of Energy and Mineral
Development said seven of the 16 had submitted final bids.
"The attraction of seven bidders is significant, taking into
consideration the current low global oil and gas prices," the
statement said, adding that the companies came from Australia,
Nigeria, Canada and the United States.
"Government will conclude the licensing round by negotiating
with successful bidders, sign production sharing agreements and
award exploration licences by the end of June 2016," the
statement said.
None of the three oil firms already operating in Uganda -
London-listed Tullow Oil TLW.L , France's Total TOTF.PA and
China's CNOOC 0883.HK - was among the bidders.
Environmental groups including Global Witness and Greenpeace
have protested the inclusion of Ngaji, a 895 square kilometre
area that is part of Virunga park along Uganda's border with
Democratic Republic of Congo.
"Uganda and Congo should make a deal ... to protect Virunga
from oil activities," London-based Global Witness said in a
statement this week, adding that drilling there would be a
"disaster" for the people and animals in the park.
(Editing by Edith Honan)