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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]