Download - International Pavilion

THE OPPORTUNITIES FOR
PETROLEUM EXPLORATION IN
UGANDA
By
Reuben J. Kashambuzi
and
Ernest N.T. Rubondo
Presented at the Annual Convention of the American Association of Petroleum Geologists
(AAPG)
Salt Lake City, Utah
May 2003
PRESENTATION
1. Background
2. Geological Setting and the East African Rift System
3. The Petroleum Potential of the Albertine Graben
4. Licencing Regime
5. The Opportunities
6. Conclusion
LOCATION AND FACTS ABOUT UGANDA
UGANDA
Location:
Latitude: 04° 12’ N & 01° 29’ S
Longitude: 29° 34’ E & 35° 00’ W
Uganda is a Republic
Total Area:
241,038 sq. Km
Altitude:
Minimum: 620 meters
Maximum: 5,110 meters
Climate:
Temp Range 15-30°C
Mean Temp. 220C
Annual rainfall 720 - 2,000mm
UGANDA
Population:
24.7 million (2002)
Capital City:
Kampala
Literacy rate:
63%
Religions:
Roman Catholic,
Protestant,
Muslim,
Indigenous beliefs
Per Capita GDP (2002): US$ 230
Total Exports(2001): US $ 452 m
Total Imports(2000): US $1.54 bn
Imports of Petroleum Products: Approx US $ 160m
Source: Uganda Bureau of Statistics &
Uganda Investment Authority
Tectonic Map of Africa
EAST AFRICAN RIFT SYSTEM (EARS)
• Bifurcates near the Tanganyika
L. Albert
shield into the Eastern and
Western Branch
• Showing HC occurrences
• High TOC lacustrine shales
in the Turkana area, the
Albertine Graben and the Lake
Tanganyika Area.
Adopted from Morley, 1999
East African Rift System and Albertine Graben
Albertine
Graben
ALBERTINE GRABEN
1.1 A Tertiary rift basin approx. 23,000 sq.km each in
Uganda and D.R.C.
Kampala
1.2 About 1,600km from Mombasa and
accessible by road, railway and air.
1.3 Hotels (some 3 star) and lodges available.
Mombasa
1.4 Tourist areas:
•
Semliki Wildlife Reserve;
Dar-Es-Salaam
•
Ajai Wildlife Reserve;
•
Obongi Wildelife Reserve
•
Queen Elizabeth National Park;
•
Murchison Falls National Park;
•
Rwenzori National Park;
•
Semliki National Park and
1.5 It consists of five (5) Exploration Areas at different
stages of exploration.
1.6 Numerous oil seeps present
GEOLOGICAL SETTING.
3.1: The Albertine Graben is the northermost
segment of East Afr Rift System.
Sebugoro Formation
100-120m of Sandstone, siltstone, diatomic,
shale, fossiliferous and calcitic ironstone.
3.2: Bounded by high angle dip-slip and
oblique-slip fault systems forming an
asymetrical basin that deepens on the
D.R.C. side.
3.3: Fault plane dip 60-80Deg.
3.4: Depths to pre-rift basement are
estimated to reach 6000m.
3.5: Structural style characterized by
extensional rifting but seismic suggests
compression in lower parts of the basin.
Kaiso-Tonya Shale
3.6: Basin development dates to Miocene.
3.7: Normal faults are en echelon and
linked by oblique transfer faults.
3.8: Boundary fault throws vary from
300-1500m and may exceed 3000m.
Kisegi Formation
150-200m of Sandstone
3.9: There’s noticeable volcanic activity
in Lake Edward-George basin, but
absent in other parts of the Graben.
GEOLOGICAL SETTING.
3350000E
3400000E
3450000E
3500000E
3550000E
3600000E
3.10:
Aeromagenetic survey of 1983/84 and subsequent
ground gravity and magnetic follow up indicate that the Albertine
Graben is divided into a number of sub-basins with depocentres in L.
Edward, Semliki, Lake Albert, Pakwach and Rhino Camp areas
which exceed 6000m in places;
3.11:
Geological history of the Graben characterised
by the pre-rift and syn-rift phases;
3.12:
Pre-rift phase begins the Precambrian that consists
of gneisses and varying amounts of quartzites and granites;
3.13:
Unmetamorphosed pre-rift clastics include tillites, variegated
mudstones, sandstones and conglomerates. They are thought to
range in age from Permian to Jurassic;
3.14:
Syn-rift rocks comprise Miocene to Quarternary sediments. Their
environment of deposition was fluvio-lacustrine;
3.15:
Waki B-1 well indicates a basal section consisting of conglomerates,
sandstones and shales postulated to be Jurassic by analogy to a
similar section in the central D.R.C.
.
SUDAN
MOYO
REDUCED TO THE POLE
TOTAL MAGNETIC FIELD
.
.
1983/84
250000N
NEBBI
Water
National
E
R
LB
F
O
IC
PU
BL
L.
A
EA2
.
.
FORT PORTAL
0
.
To Kampala
HOIMA
0
DE
M
100000N
.
.
.
MASINDI
RE
Towns
O
CR
AT
IC
150000N
T
CO
200000N
NG
Roads
Boundary
Boundary
Expl. Areas
50000N
EA1
PARAA
LEGEND
.
To Gulu
ARUA
300000N
350000N
400000N
450000N
3300000E
To Kampala
MUBENDE
To Kampala
To Masaka
KASESE
0
L. GEORGE
0
EA3
.
50000S
L. EDWARD
To Masaka
100000S
100000S
MBARARA
0
0
150000S
3300000E
50000
3350000E
0
3400000E
50000
metre
3450000E
100000
3500000E
150000S
UGANDA
3550000E
3600000E
nT
-141.2
-85.8
-74.3
-64.3
-52.3
-38.2
-22.6
2.4
57.5
Progress of Exploration in Uganda
1983/84
•
1983/84

Aero-magnetic:
-Identified 3 basins: EA1, EA2 & EA3.
•
1991-Todate

Geological mapping:
-Source rocks, Reservoir rocks and
possible seals identified and surface
structures mapped.
EA1

Ground Gravity and Magnetics:
-EA’s 1-4 covered, EA5 in progress
-Identified 5 basins with modeled
sediment thickness 3 -5.5 Km.
EA2

Seismic:
-Identified complex geological
structuring and confirmed the above
sediment thickness in EA3.
-2D Seismic acquisition in EA2
expected before end of 2003.
EA3

Exploratory Drilling:
- 2002
- Additional drilling expected during
2003
1991-Todate
HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
BASIN GEOMETRY
180000
200000
220000
240000
280000
300000
320000
340000
To Arua
BOUGUER GRAVITY ANOMALY MAP
UGANDA
1
Lake
Rubi
To Kampala
0
- 19
D
E’D'
260000
260000
280000
EXPLORATION AREAS 1,2&3
- 1 6 0
50
- 1
280000
.
260000
300000
300000
160000
Paara
6 0
- 1
0
4
6
1
-
2
0
O
NG
O
0
-
0
2
-1
1
-1
30
240000
220000
0
of
C
200000
-210
2
- 130
4 0
DR
1
160000
0
4
-1
/cc
2g
5 0
- 1
2.
.9-
0
=1
To Kampala
140000
- 1
3
-
0
)
2
-1
50
10
0
-13
E
3
Lake Albert(D=1g/cc)
d(D
Se
6
A
160000
1
20
- 1
- 1 4
0
180000
-
0
- 1 3
Kibiro
E'
E
C'
.
0
- 1 2
Kasenyi
- 160
“Hills” represent possible traps.
1
4
Mswa
50
- 1
140000
 Valleys represent possible kitchen areas.
-
1
200000
220000
-
180000
240000
-1
30
50
-1
C
Waki-1 well
120000
 A number of buried “valleys” and “hills”
observed along E-E’.
Turaco-1
4 0
- 1
A'
LEGEND
4 0
- 1
- 14
0
- 1
3
100000
Kibuku
Basement(D=2.7g/cc)
Expl. Areas
Boundary
0
Water
- 1 5 0
7 0
0
- 1 6
- 1
Roads
0
- 1
1
- 1 2 0
80000
- 1 3 0
10000
metres
20000
50
- 1
0
180000
0
- 1 4 0
200000
30000
220000
Towns
- 1 4 0
- 14
160000
10000
Oil seepages
240000
260000
280000
300000
320000
340000
mGals
-214.2 -200.7 -183.3 -170.5 -161.4 -154.4 -150.1 -145.9 -140.7 -135.6 -130.4 -124.8 -117.1
80000
- 150
To Mubende
HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
SEISMIC DATA
 Depocentres - Sediment thickness
in excess of 5 km
Trap types - Rollover anticlines,
Tilted Fault Blocks, and other
types.
HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
RESERVOIR ROCKS
•High quality sandstones in outcrop also
in Waki B-1 and Turaco-1 wells
•Porosity 20-30%

Alternating shales and sandstones in Waki B-1 well suggest potential for good sealing
mechanism, and posibility of multiple pay zones.

Similar arrangment observed in outcrop of the Semliki basin.
HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
The Albertine graben is rich in
reservoir rocks.
•Porosity in sandstone ~30%
•Secondary porosity in
fractured basement
HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
1. Source Rocks
• Mapped inthe Kaiso_Tonya
area
•Encountered in both Waki B-1
and Turaco-1 wells
2. Oil Seeps
An oil film on Victoria Nile
There are five proven oils seeps in the Albertine graben
•Paara, Kibiro, Kibuku, Sempaya
•Others reported on the DRC side of the Graben
•Oil shows encountered in wells.
HYDROCARBON POTENTIAL OF THE ALBERTINE GRABEN
Traps
 Typical rift traping mechanisms to be expected
1.
2.
3.
4.
5.
6.
Drape-anticline;
Rollover-anticline;
Fault-block;
Buried-hill;
Pinch-out;
Lithologic
 Faulting major
control of trap
formation.
SHEMATIC DIAGRAM SHOWING
DIFFERENT TYPES OF TRAPS
TRAP TYPES IN SEMLIKI BASIN, ALBERTINE GRABEN
Gravity
SE
NW
Depth profile
1:50,000
• Gravity highs
•Tilted Fault Blocks
•Drape anticline
•Rollover anticline
The Prospectivity of the Albertine Graben
DHI’s
Direct Hydrocarbon Indicators (DHI): Flat Reflections,
Bright spots.
AVAILABLE MAKERT

Uganda’s Petroleum Products Consumption

US $ 160.0m annually

40% of export earnings

12% of GDP

5% increment per year
 Regional market

Uganda, Kenya, Tanzania estimated to consume over US $ 1.0 bn annually.

None produces oil.

Rwanda and Burundi import all their petroleum products requirements

Eastern D.R.C. depends on imports through Uganda.
DISCOVERY IN THE ALBERTINE GRABEN WILL FIND A LARGE
AND READY MARKET
ANALOGY
•Rift Environments are well established world
wide as good habitats for oil and gas
accumulation e.g Viking Graben in the North Sea
•Albertine Graben is Analogous to Yishu Graben
in China, Central Sumatra Basin in Indonesia ,
Cambay Basin in India.
YI-SHU GRABEN IN CHINA
Lower Tertiary, Lacustrine source rock, Sst reservoirs and basement
drape anticlines, faulted blocks, buried hills, 2200 km2, 876.54
million bbls and 31.8 billion m3 gas.
CENTRAL SUMATRA BASIN
• Lower Tertiary
• Lacustrine source rock, Type
I&II kerogen
• Delta front sandstones and
fractured basement
• Palaeo highs, drag folds
• >90,000 km2
• 25 billion bbls
Central Sumatra
Basin
(Adopted from Lambiase, 1995)
COMPARISION OF YI-SHU, ALBERTINE AND CENTRAL SUMATRA
Parameters
Yi-Shu Graben
Albertine Graben
Central Sumatra Basin
Area (km2)
2200
> 10,000
>90,000
Length (km)
140
570
450
Width (km)
10-20
45
150-220
Thickness
>6000
>5000
~5000
Framework
Full Graben
Full Graben
Full Graben
Source rocks
Lower Tertiary,
Lacustrine, Type I, II
kerogen, TOC >1%
Lower Tertiary,
Lacustrine, Type I II, III
kerogen, TOC >1%
Lower Tertiary,
Lacustrine, Type I, II
kerogen, TOC 1-10%
Reservoirs
Mostly Sst, also
Basement
Mostly Sst, good porosity
also Basement
Delta front Sst, good
porosity also Basement
COMPARISION OF YI-SHU, ALBERTINE AND CENTRAL SUMATRA
Parameters
Yi-Shu Graben
Albertine Graben
Central Sumatra Basin
Traps
Various incl. Drape
anticline, faulted
block, buried hills,
stratigraphic
Various incl. Drape
anticline, faulted
block, buried hills,
stratigraphic
Timing
favourable
unknown
Palaeo highs,
drag folds,
inversion
structures
favourable
Petroleum
system
Proven
Speculative
Proven
Resource
876.54 m bbls
unknown
25 billion bbls
LICENCING REGIME
 Petroleum Exploration in Uganda is governed by:
i.
ii.
iii.
iv.
The Petroleum (Exploration & Production ) Act, 1985;
The Model Production Sharing Agreement
Uganda Wildlife Statute, 1996
The National Environment Statute, 1995
 Exploration Periods
Exploration License not exceeding 8 years subdivided as follows:
Exploration Period
Maximum
First
4 years
Second
2 years
Third
2 years
Production license 25 years with a possibility of renewal for 5 years
 Work Programme
•Seismic commitment
•An early well commitment
 Mandatory Relinquishment
•50% after the First Period.
•25% after the Second period
FISCAL TERMS
i. Sliding Royalty on production to allow for producing small fields
ii. Sliding profit sharing
iii. Attractive cost recovery
iv. Income Tax currently fixed at 30%
 Government
will consider alternative proposals during negotiations.
Some Key Incentives to Investors
•The graben has all the necessary elements of a valid petroleum system;
•The Exploration Areas are sizeable;
•The whole Region imports its petroleum products;
•There is already established market for petroleum products;
•Agreement on Co-operation with Democratic Republic of Congo already in place;
•The Department of Petroleum Exploration and Production provides well
organized data and guidance;
•The investment law is in place which is being handled by Uganda Investment
Authority;
•No signature bonus;
•No restriction on repatriation of profits;
•Stable taxation regime to avoid encumbrances that would arise from tax
fluctuations;
•Membership of Uganda to Multilateral Investment Guarantee Agency that
ensures security of investment
OPPORTUNITIES FOR LICENSING
EA5 Rhino Camp Basin
Area Size 6,040 sq. Km
Estimated sediment thickness 3 Km from
aeromagnetic data.
EA2 Lake Albert Basin
Area size 4,675 sq Km
Modeled sediment thickness 5.5 km
Licensed to Hardman Resources Ltd.
Energy Africa Ltd.
EA4 Lake Edward-George basin
Area Size 5,910 sq Km
Sediment thickness 5.5 Km
and
EA1 Pakwach Basin
Area Size 4,285 sq Km
Estimated sediment thickness 5 Km
EA3 Semliki Basin
Area size 4,630 sq Km
Estimated sediment thickness 6 Km
Licensed to Heritage Oil & Gas Ltd. and
Energy Africa Ltd
CONCLUSION
•The Petroleum potential of the Albertine Graben
has been demonstrated but remains under explored.
•There is acreage in 3 Exploration Areas which is
available for licensing
•Uganda has a conducive investment policy,
liberalized economy and very clear petroleum
legislation
•You are welcome to invest in the petroleum
potential of Uganda, enjoy the scenery and
friendliness of its people.
Other Investment Opportunities
Floriculture
Fish and Fish farming
Cotton and Textile
Building and Construction
Foods and Beverages
Education
Financial Services
Fruits and Vegetables
Dairy
Tourism
Petroleum Exploration
Mining
Commercial Agriculture
Agro-processing
Thank you
and
We also Welcome you to Booth no. 8914 for further discussions.
Hope to see you in Uganda soon.
For further Information, Please Contact:
The Commissioner
Petroleum Exploration and Production Department
P. O. Box 9, Entebbe, UGANDA
Tel.: 256-41-320714/77-720714
Fax.: 256-41-320437
Email: [email protected]