The Government  of Uganda has today signed a production sharing agreement and issued license for petroleum exploration, development and production over the Kanywataba contract area with Armour energy limited from Australia. Speaking during the signing ceremony at the energy ministry, the energy Minister Eng. Irene Muloni said, this is the first production sharing agreement to be signed in line with section 58 of the petroleum exploration, development and production Act2013, the legal regime under which she announced the first competitive licensing round during February 2015.

Uganda’s Minister for Energy and Mineral Development, Irene Muloni, and Roger Cressey, CEO of Armour Energy, speak to the media before signing a Production Sharing Agreement (PSA) in Kampala, Uganda, September 14, 2017. REUTERS/James Akena

The signed pact between the Government of Uganda and Amour energy limited consists of key provisions that provides the company license with an acreage of 344 sq kilometers for four years, drilling at least one well, payment of royalty raging from8.5% to 21% based on gross total daily production in barrels of oil per day, state participation at 20% among others.

Meanwhile, the CEO, Amour energy limited, Roger Cressey expresses committment to follow all the production and exploration guidelines as they go on with business and confirms setting aside over USD.1.98Bn to facilitate the running of business in Uganda where he says there are more oil opportunities to explore in the near future.

 Uganda currently boosts of 6.5 million barrels of oil in her wells.