The Uganda National Oil Company (UNOC) is actively seeking a joint venture partner to assist in the exploration and development of the Kasuruban exploration block located in western Uganda. This announcement was made by a spokesperson for the state-owned oil firm on Wednesday. In 2023, UNOC entered into a two-year production sharing agreement with the Ugandan government for this block, which can be renewed twice for an additional two years. The agreement was renewed in March of this year.
UNOC is now focused on advancing the development of the Kasuruban block and is looking for a partner to facilitate this process. According to company spokesperson Angella Ambaho, specific details regarding the equity stake a potential joint venture partner would take have not been disclosed. UNOC currently holds a 40% stake in the country’s refinery project and a 15% stake in each of the oil projects, including Tilenga, Kingfisher, and the East African Crude Oil Pipeline (EACOP).
UNOC plays a crucial role in bridging Uganda’s aspirations of becoming an oil-producing nation and the technical know-how provided by international firms such as TotalEnergies and CNOOC. These companies serve as joint venture partners with UNOC in the Tilenga and Kingfisher blocks. Uganda anticipates producing its first oil by 2026, marking a significant milestone in its oil exploration endeavors.
East African Crude Oil Pipeline Project
Earlier this year, the $5 billion East African Crude Oil Pipeline (EACOP) was initiated to facilitate the export of crude oil from Uganda to a port in Tanzania. This ambitious project involves constructing a 1,443-kilometer-long (897 miles) pipeline that will transport oil from the landlocked Lake Albert region to the Tanga port. The pipeline is expected to play a vital role in bringing Ugandan crude to international markets, with a transport capacity of 216,000 barrels per day, which could increase to 246,000 bpd.
The EACOP shareholders include TotalEnergies, which holds a 62% stake, followed by the Uganda National Oil Company Limited (UNOC) and the Tanzania Petroleum Development Corporation (TPDC) each with a 15% stake, and CNOOC, the Chinese state oil giant, holding an 8% interest.
As Uganda moves forward with its oil exploration and production plans, the search for a joint venture partner for the Kasuruban block highlights the country’s commitment to tapping into its oil reserves, which could significantly impact its economy and regional energy landscape.
