NDR 10 COUNTRY REPORT Presented By Andrew Ochan

NDR 10 COUNTRY REPORT Presented By Andrew Ochan Geologist, Petroleum Exploration and Production Dept, Ministry of Energy and Mineral Development Uganda Rio de Janeiro, Brazil 18 th March, 2011

PRESENTATION OUTLINE 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 NDR 10 Country Report - Uganda 2

INTRODUCTION v. It is a Tertiary rift, 500 km long, averaging 45 km wide and 23, 000 sq km (Ugandan part) NDR 10 Country Report - Uganda As w a Gr ab en v. The Graben forms the northern most part of the Western arm of the East African Rift System Ab u. G ra be n Al be rti ne v. The area with the highest potential for petroleum production in Uganda is the Albertine Graben Af ar De pr es sio n THE ALBERTINE GRABEN Lake Tanganyika Sh ea r zo ne Lake Albert Tanzanian Craton Lake Malawi 3

INTRODUCTION STATUS OF LICENSING v Albertine Graben is currently subdivided into 10 Exploration Areas (EAs) v 5 active Production Sharing Agreements (PSAs) v Companies currently licensed are Tullow Oil, Neptune Petroleum and Dominion Petroleum v Tullow is finalising the process of farming down its interests to Total and CNOOC (33. 33% each) taking into account Government participation NDR 10 Country Report - Uganda 4 4

MEMD ORGANISATION MINISTER OF STATE FOR ENERGY MINISTER 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 ENERGY RESOURCES DEPARTMENT (ERD) PETROLEUM EXPLORATION & PRODUCTION DEPARTMENT GEOLOGICAL SURVEYS AND MINES DEPT. PETROLEUM SUPPLIES DEPARTMENT SECTORAL PLANNING/ POLICY ANALYSIS UNIT RESOURCE CENTRE NDR 10 Country Report - Uganda 5

ORGANISATION PEPD IN BRIEF v Petroleum Exploration and Production Department (PEPD) is a department in the Ministry of Energy and Mineral Development in Uganda v Formed in September 1991 from a Petroleum Unit under Geological Survey and Mines Department (GSMD) v 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 v In the exploration, development and production of oil and gas resources, oil companies can participate in Uganda by entering into agreement (PSA) with Government NDR 10 Country Report - Uganda 6

ORGANISATION MAIN FUNCTIONS OF PEPD v Promotion of petroleum exploration in the country v Monitor and regulate licensees undertaking petroleum exploration and production in the country v Acquire, process and interpret geophysical, geological and geochemical data with a view of assessing the country's petroleum potential v Initiate policy and legislation on petroleum exploration and development v Build national capacity in the field of petroleum exploration and development v Implement the National Oil and Gas Policy (2008) NDR 10 Country Report - Uganda 7

ORGANISATION NEW INSTITUTIONS IN THE OFFING v Petroleum Authority of Uganda - Regulatory Body v Directorate of Petroleum in the Ministry responsible for oil and Gas - Policy and Licensing - Petroleum Data Mgt v National Oil Company - participate in petroleum operations NDR 10 Country Report - Uganda 8

AVAILABLE DATA Data Type Coverage Geological Surface Mapping >10, 000 sq km Aeromag&Aerogravity 16, 560 line km Ground/lake gravity and 10, 500 line km magnetic Geological Surface Mapping data >10, 000 sq km 2 -D Seismic ~6, 000 line Km 3 -D Seismic Well data NDR 10 Country Report - Uganda 51 wells 9

PETROLEUM RESOURCE POTENTIAL v 18 oil and/or gas discoveries made to date v 5 discoveries (Mputa, Kasamene, Kingfisher, Waraga & Nzizi) at FDP stage v. Discovered resources currently estimated at ~ 2. 5 billion bbls of oil equiv in place ØType of crude is 30 -34 API low sulphur, waxy crude, Pour point of ~40 degrees Celsius. ØExcellent reservoir qualities with 20 -30% porosities ØWell flow rates in the range of 1, 000 – 14, 000 bopd indicative of good permeabilities NDR 10 Country Report - Uganda 10

NDR ORGANISATION NDR 10 Country Report - Uganda 11

OBJECTIVES OF THE NDR v. Protection and preservation of the country’s E&P data for the benefits of future generations; v. Encouragement of exploration activity by making high quality data available quickly to potential investors; and, v. To strengthen information sharing and exchange of E&P data among the various stakeholders. NDR 10 Country Report - Uganda 12

NDR INFRASTRUCTURE v Currently semi-permanent storage for: Ø Seismic data tapes Ø well data (reports, logs, CDs) Ø Rock (cores, cuttings, fluids) v Future plan for storage in a modern data centre v IT infrastructure includes various servers, LAN, Backup and recovery mechanisms: v Software: Desktop OS (windows), Geoscience and Mapping, MS office NDR 10 Country Report - Uganda 13

LEGISLATION/REPORTING REQUIREMENTS v Petroleum Exploration and Production Act (1985) v Petroleum E&P Regulations (1993) v Production Sharing Contracts NDR 10 Country Report - Uganda 14

ONGOING PROJECTS Field Tape Copying & Transcription Commenced: Feb 2010 Personnel Ø 1 Geophysicist Ø 4 Technicians Hardware/Software ØTape Drives (IBM 3480 E 1 A, 3490 E, 3590 E 1 A , STK 4280 Dual 3480 & Exabyte 8505) ØTape Cartridges ØMAGMA Software NDR 10 Country Report - Uganda 15

ONGOING PROJECTS Task v Create run lists and copy raw seismic and support data from various media (3480, 3490, LT 02, etc) onto computer hard disk v Carry out QC, reformatting and data header standardization measures to ensure the data conform to accepted industry standard v Security back-up onto external disks and servers v Transcription of data onto PEPD acceptable media i. e 3590 which guarantee reasonable level of data durability. Output v 96% of 3, 114 tapes copied to disk, QC’ed and ready for transcription to IBM 3590 cartridges NDR 10 Country Report - Uganda 16

ONGOING PROJECTS Crane MS Access Dbase Development Commenced: Feb 2010 Personnel: Various Status: 90% done, populating NDR 10 Country Report - Uganda 17

CHALLENGES v DM Structure is loosely defined Ø Lack of dedicated data management/IT personnel v Seismic data on various media with lack of reading capabilities v Lack of data submission guidelines v Storage facilities (buildings) and methods not conforming to industry standards v v Naming conventions! Funding NDR 10 Country Report - Uganda 18

ACHIEVEMENTS v Improved IT infrastructure v Seismic data transcription to common media v Data backup solutions in the offing v Institutional Framework in offing with data management functions to be vested on the Petroleum Authority v New legislation being drafted to address data submission NDR 10 Country Report - Uganda 19

LESSONS LEARNED AND FUTURE PLANS v Even for small amounts of data, careful planning is key v You need dedicated people on DM v Consideration to employ at least one dedicated IT Resource v Development of data submission guidelines v Complete tape transcription v Current law being updated to clearly define DM roles v Construction of a modern data centre v Consideration to scan all hard copy data v Complete Crane Dbase devt, make data avail on portal/web NDR 10 Country Report - Uganda 20