1. THE POTENTIAL AND DEVELOPMENTS IN UGANDA’S UPSTREAM PETROLEUM SECTOR
By: Reuben J. Kashambuzi,
Commissioner, Petroleum Exploration and Production Department, Ministry of Energy and Mineral Development, UGANDA.
PRESENTED AT THE AAPG CONVENTION, DALLAS TEXAS, APRIL,2004.

2. TOPICS TO COVER. EAST AFRICAN RIFT SYSTEM AND ALBERTINE GRABEN.
SUMMARY OF DEVELOPMENTS IN PETROLEUM EXPLORATION IN UGANDA.
PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN.
CONCLUDING REMARKS.

3. THE ALBERTINE GRABEN IS:
1. EAST AFRICAN RIFT SYSTEM AND ALBERTINE GRABEN N
ALBERTINE GRABEN
THE ALBERTINE GRABEN IS:
Northernmost part of the Western arm of the East African Rift system.
23,000sq km (Uganda part)
1600 km from the coast
It is Miocene in age

4. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION IN UGANDA
A: BEFORE 1983:
Butiaba Waki – B1 well
Drilled in 1938
T.D of 1232m
Revealed presence of:
Source rocks
Reservoir rocks
Possible seals
Live oil
Possible multiple pay zones.
Map showing oil seeps.
Oil seeps first documented by Wayland, 1925
30E
31E
32E

5. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
Shallow drilling in 1956 for geological correlation.
13 shallow wells in Semliki basin
9 near Kibiro Oil seep
Depths of 150 –640m
Some wells with oil shows.
CLEARLY EVEN THEN, THERE WAS AMPLE EVIDENCE OF PETROLEUM POTENTIAL WHICH WAS NOT FOLLOWED-UP

6. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
1983/1984:
9578 line km of aero -magnetic data acquired
DEMOCRATIC REPUBLIC OF CONGO

7. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
Interpretation of aeromagnetic data reveals:
3 significant basins
Depth to basement of 3-4 km
Albertine Graben subdivided into three Exploration Areas (EAs), namely:
EA 1
EA 2
EA 3
Significant depths for source rock maturation and oil generation
Oil seeps accounted for. N
EA1
Mswa
Kibiro
EA2
EA3

8. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION 1984 TO DATE
B: 1984 TO DATE
Gravity surveys have:
Revealed significant structuring.
Improved depths to basement.
Enabled further subdivision of Exploration Areas (EA’s)from 3 to 5.
Improved the capacity of Government to promote the potential of the Albertine Graben.
Two Exploration Areas (2 & 3) licensed. Negotiations concluded for EA 1. 5 1 2 3 4

9. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
EXPLORATION AREAS AND STATUS OF 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. and Energy Africa Ltd in 2001.
EA1 Pakwach Basin
Area Size 4,285 sq Km
Estimated sediment thickness 5 Km
EA4 Lake Edward-George basin
Area Size 5,910 sq Km
Sediment thickness 5.5 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 in 1997.

10. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
MAP SHOWING SEISMIC GRID SUPERIMPOSED ON BOUGUER ANOMALY.
1998: 170 line km.
2001: 240 line km.
Very good quality data.
Drillable structures identified.
Confirmation of major structures mapped by gravity.
Turaco-1

11. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
A section showing good quality 2-D seismic data
in Semliki basin

12. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
DRILLING:
Turaco-1.
Spudded on 17th September 2002
Total Depth=2487m
Gas and oil shows
Live oil
Suspended following
mechanical problems.
Slim hole rig at location of Turaco-1 well
in Semliki Basin (EA3)

13. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
DRILLING:
Turaco-2
Spudded on 05 October 2003 using larger rig.
Same Location as Turaco – 1.
Intended to reach targets that Turaco-1 did not.
Larger Rig on Location at Turaco-2 well. Sidetrack of Turaco-1.

14. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
Seismic Surveys on Lake Albert
Covers EA2 and EA3.
Jointly carried out by Hardman Petroleum Africa Ltd, Heritage Oil and Gas Ltd and Energy Africa (Uganda) Ltd.
Commenced 21st Sept. 2003;
1,569 line km acquired.
Seismic vessel, Victoria III, on Lake Albert.

15. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
Seismic grid map

16. 2. DEVELOPMENTS IN PETROLEUM EXPLORATION CONT’D…
Petroleum Exploration and licensing is governed by:
(i) The Petroleum(Exploration and Production) Act, 1985
(ii) The Petroleum (Exploration and Production)(conduct of Exploration Operations) Regulations, 1993
(iii) The Production Sharing Agreements
(iv) The National Environment statute
(v)The wildlife statute
(vi)Reference Manual, 2002 by National Environment Management Authority.

17. 3. PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN
3.1 Direct Hydrocarbon Indicators (DHI)
Oil Seeps
An oil film floating on River Nile at Paraa (EA1)
Oil Seepage at Kibiro, EA2
Kabyosi Oil Seepage (EA2)

18. Oil Seeps Cont’d PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
Hydrocarbon seeps on R. Kabyosi
Hydrocarbon seeps on R. Warwire
Hohwa Oil impregnated sandstone
Oil Seeps Cont’d

19. 3.1.2 Flat spots PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
186
181
171
161
151
141
131
121
0.50
0.58
0.66
0.74
0.82
0.90
0.98
1.06
Time (S) SP
111
191
PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
FLAT SPOTS
3.1.2 Flat spots

20. Kabyosi and Warwire oil seeps in Kaiso – Tonya.
PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
Confirmed oil seeps.
Kabyosi and Warwire oil seeps in Kaiso – Tonya.
Residual oil sandstone (oil sand) in Kaiso-Tonya.
Kibiro oil seep and the Kaiso – Tonya seeps, supplied from the same source.
Difference is that Kibiro is continuously recharged from shallow reservoir (presence of  hopanes and regular steranes in Kibiro seep, Peter Hall, Geolab Nor’ 2003).

21. Inferred from oil seeps. Presence in Waki B-1 well.
PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
3.2 SOURCE ROCKS
Inferred from oil seeps.
Presence in Waki B-1 well.
Mapped in Kaiso –Tonya.
Inferred from gas/oil shows, live oil in Turaco-1
Kaiso-Tonya Shale

22. PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
3.3 Reservoir Rocks.
Mainly sandstones.
Thick (150 – 200m) e.g. Kisegi Formation.
Well sorted with porosities of the order of 30%.
Good permeabilities .
Possibilities of fractured basement as reservoir.
Possibilities of multiple pay zones.
Oil sand in Kaiso Tonya is 50m thick at outcrop.
Present in Turaco – 1 and 2
SUDAN
D.R.C.
Sebugoro Formation
m of Sandstone, siltstone, diatomic, shale, fossiliferous and calcitic ironstone.
Waki-B1-well
Oil Sandstone exposure in Kaiso Tonya
Kibuku
Oil seepages
UGANDA
Kisegi Formation
m of Sandstone

23. RIFT FAULTS AND TRANSFER ZONES
3.4 Traps
3. PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
RIFT FAULTS AND TRANSFER ZONES
Faults control trap formation
Relay ramps are significant avenues of sediment transportation and deposition.
After McClay 1997

24. 3.4 Traps contd.. KAISO-TONYA COMPARED TO GRONINGEN AND BERYL FIELDS
Large scale relay ramp Groningen gas field, Netherlands (after Peacock et al 1994)
Large scale relay ramp- Beryl oil field, South Viking Graben (after Peacock et al 1994)
Large scale relay ramp – Kaiso-Tonya

25. 3.4 Traps contd.. Gravity Anomalies
3. PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
3.4 Traps contd..
Gravity Anomalies
Gravity highs observed along E-E’ represent possible traps - inversion anticlines.
Lows represent possible ‘kitchens’.

26. 3.4 Traps contd.. PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
HOG-98
Turaco –1 well drilled on a gravity high (uplifted basement) (bottom).
Compares well with Sudan where major oil fields coincide with gravity highs.

27. Inversion anticlines are possible hydrocarbon traps. q
PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
3.4 Traps
Contd … .
Inversion anticlines are possible hydrocarbon traps. q q
Rollover anticlines are typical traps in rifted environments.
Stratigraphic traps expected. q
Seismic section showing an inversion anticline
Seismic section showing an inversion anticline

28. PETROLEUM POTENTIAL OF THE ALBERTINE GRABEN CONT’D
3.5 Seals
Alternating shales and sandstones suggest good sealing mechanism.
Wide spread clays, some quite thick, may provide regional seals. Clays have been mapped across the Albertine Graben.
Observations in Turaco-1 still confidential.
A valid petroleum system exists.

29. 4.0 CONCLUDING REMARKS
4.1 SOME FACTS ABOUT UGANDA
Total Area : ,039 sq km
Population (2002) : million
Total Exports (2002) : US$477 million
Total Import (2001): US$ 1.0 billion
Petroleum Imports (2001): US$ million(35% export earnings)

30. All the valid petroleum system do exist in the graben.
4.2 SOME KEY INCENTIVES TO INVESTORS
All the valid petroleum system do exist in the graben.
Exploration Areas are sizeable.
Market exists because the whole Region imports its petroleum products.
No Additional Profits Tax and no restriction on repatriation of profits.
There is stable taxation regime to avoid encumbrances resulting from tax fluctuations.
Uganda is a member of Multilateral International Guarantee Agency.

31. LOCAL/REGIONAL CONSUMPTION
4.3 POTENTIAL MARKETS FOR UGANDA’S OIL AND GAS
OIL
LOCAL/REGIONAL CONSUMPTION
- Uganda consumed over 600,000 m3 of petroleum products during 2003 (equivalent to approximately US $ 165 million). This is increasing at a rate of 6%.
- East Africa (Kenya, Uganda, Tanzania) spend in excess of US$ 1 billion annually.
Regional demand including Rwanda,Burundi, Eastern DRC increasing
Region can consume petroleum products close to the equivalent of 100,000 barrels of oil per day (BOPD).
Medium to big refinery.

32. -Market not as straight forward as that for oil
GAS
POTENTIAL MARKETS FOR UGANDA’S OIL AND GAS CONT’D
GAS
-Market not as straight forward as that for oil
Generation of electricity considered an option
Gas considered very clean source of electricity
Conducive to stepping up generation capacity based on demand
Other uses of gas
Production of Carbon Black for production of tyres, plastics, paint paper etc
Production of methanol
Production of Ammonia urea for use as fertilizers
Reduction of Iron Oxide to metallic iron(feed stock for steel production) Muko Iron Ore.

33. Thank you
Thank you
You are All Welcome to Uganda Booth for more information & Discussion
For further Information, Please Contact:
The Commissioner
Petroleum Exploration and Production Department
P. O. Box 9, Entebbe, UGANDA
Tel.:
Fax.: