Federal Republic of Somalia

 

Uganda has 6 Sedimentary basins out of which the Albertine graben is the most explored. The graben forms the northern most part of the Western arm of the East African Rift System (EARS), stretching from the border with South Sudan in the North to Lake Edward in the South, a distance of over 500km. Other sedimentary basins are Hoima, Lake Kyoga, the Kadam-Moroto, Lake Wamala and Lake Victoria.

Within the Albertine graben, a total of about 6,000-line km of 2D seismic data and 2,000km2 of 3D seismic data has been acquired. In addition, since 2002, 160 exploration, appraisal and production wells have been drilled in the graben.  To-date, 21 discoveries of oil and gas have been made in Uganda in excellent quality reservoir sands and many of the wells drilled have intersected significant net oil pay which is sometimes in excess of 30meters. The oil is generally light to medium gravity (API of approx. 15o to 33o) and sweet, with low Gas-Oil Ratio (GOR) and some associated wax. The discovered resources are currently estimated at a STOIIP of 6.5 billion barrels of oil and about 500Bcf of gas.

Approximately 15% of the petroliferous Albertine graben is currently licensed to International Oil Companies. Nine production licenses have been issued in this prolific area. These are; Kingfisher Development Area, Jobi-Rii, Gunya, Ngiri, Kasamene-Wairindi, Ngege, Nsoga, Kigogole-Ngara and Kaiso-Tonya (KT). Two companies that is TotalEnergies B.V (TotalEnergies) and CNOOC Uganda Limited (CNOOC) have been issued these licenses to develop and produce the fields.

The Government of Uganda further issued two more exploration licenses; to Uganda National Oil Company for the Kasurubani Block and DR Energy Turaco SMC for the Turaco Block in 2023. This followed the successful conclusion of the 2nd licensing round in Uganda that commenced in 2019. This licencing round was launched at the 9th East African Petroleum Conference and Exhibition 2019 (EAPCE’19) in Mombasa, Kenya.

The Government of Uganda has also commenced petroleum exploration in basins other than the Albertine Graben. This has started in Moroto-Kadam basin, North Eastern Uganda in the Karamoja region. This is majorly intended to increase the resource base of the country that will feed into this planned petroleum infrastructure. Currently, preliminary works have also commenced in the Lake Kyoga basin.

 


Status of Licensing in the Albertine Graben of Uganda

 

Current Developments in the Oil and Gas Sector

The Government of Uganda and together with the Upstream Joint Venture Partners are currently undertaking the developments necessary for the commercialization of the petroleum resources discovered in the Country.

Commercialization has been planned using two Upstream projects namely Tilenga and Kingfisher Projects, the Greenfield Oil Refinery and the East Africa Crude Oil Pipeline (EACOP). Government together with Oil companies has planned to drill over 400 wells during the development phase. These will include producers, injectors and observation wells. To date, a total of 39 development wells have been drilled in both Kingfisher and Tilenga projects.

In addition, commercialization is planned to include development of a 60,000bbl/day modular refinery and development of a heated and insulated buried crude oil export pipeline.

Following comprehensive studies, the Governments of Uganda and United Republic of Tanzania agreed to development of the East African Crude Oil Pipeline (EACOP). The export pipeline starts from Hoima district, Uganda and terminates at the Marine Storage Terminal (MST) at the Port of Tanga in the United Republic of Tanzania as indicated in the map below. It is from Tanga that the Crude Oil will access the international markets.

The two countries have since put in place the required legal and commercial framework for the development and operation of the pipeline. This includes but not limited to the Intergovernmental Agreement (IGA) for the development of the East African Crude Oil Pipeline (EACOP), and the Host Government Agreements (HGA) with the Project Developers, Transport and Tariff Agreement.

EACOP will traverse a distance of 1445km from Hoima in Uganda to Tanga in United Republic of Tanzania. The pipeline will be buried throughout the entire route, and longest heated pipeline in the world (Fig.5) Other pipelines are planned to be developed in the Country. These include; flowlines from fields to Central Processing Facilities (CPFs), feeder pipelines from the CPFs to collection hub, product pipeline from refinery to central market in Kampala and product pipelines linking Uganda to East African countries.


Map showing the East Africa Crude Oil Pipeline

 

Following the announcement of the Final Investment Decision (FID) in February 2022, the EACOP Company has since received its construction license in January 2023 under the Petroleum (Refining, Conversation, Transmission and Midstream Storage) Act, 2013.

Post-licence, EACOP Company has issued contracts for construction and line pipes. Early Civil Works are underway in Uganda and Tanzania, Main Camps and Piping Yards, Marine Storage Terminal and the Coating Plant has been commissioned in March 2024. The detailed engineering for the pipeline is in advanced stages and compensation of the project affected persons for their land and properties in Uganda stands at over 95%.


One of the schools that was affected by the EACOP route and has been constructed.

 
Refinery Development

The Government of Uganda through the Ministry of Energy and Mineral Development is in discussions with potential investors.

Negotiation of the key commercial agreements between the Government and the Private investors is ongoing as well as the plans for the schedule of activities for the development of the pipeline.

Development of Supporting Infrastructure

Road Infrastructure: The Government is building over 700 km of roads in the Albertine Region, enhancing connectivity and living standards in Hoima, Buliisa, Nwoya Masindi, Fort Portal, Kibaale, Mubende, Ssembabule, and Mpigi. The roads have contributed to improved living standards, especially as affordable and accessible transport is a critical factor in production.

Kabaale Industrial Park: Spanning 29 sq. km in Kabaale, this park will include an oil refinery, Uganda's second international airport, a crude oil export hub, a logistics centre, and other oil and gas facilities.

Kabalega Airport: Currently 95% complete, this cargo airport will support oil and gas operations and later expand for passenger use, boosting tourism and western Uganda's agricultural exports.


The Downstream

Uganda predominantly imports its petroleum, with over 90% arriving through Kenya's Mombasa port, supplemented by imports via Tanzania's Dar-es-Salaam port. Our market-driven approach allows supply and demand to dictate pump prices naturally.

 

One of the crude oil export pumps for the EACOP being tested at the manufacturing facility

 

In 2023, Uganda's petroleum consumption reached 2.5 billion litres, The government policy is to ensure uninterrupted supply of petroleum products. Uganda plans to develop storage capacity of approximately 300 million liters at the Kampala Storage Terminal.


Liquified Petroleum Gas

Government has rolled out plans to promote the use of LPG at the household level. Some of the initiatives include making LPG readily available and affordable. In 2023, Government distributed 13,733 LPG Starter Kits in Kampala, Mukono, and Wakiso, and aims to reach 50,000 households across all cities in the 2024/2025 financial year.

With an annual growth rate of 9% in LPG usage, Government continues to support this green initiative by exempting LPG from taxes, encouraging wider adoption across Uganda.

In addition to the above efforts, the upstream projects will be producing LPG from the excess associated Gas to ensure conformity to our environment and climate standards and commitments

 

Tanzania   has been   exploring for oil and gas for over sixty (60)   years. To date, a total of ninety-five (95) exploration and development wells have been drilled in the coastal basins, deep sea, and inland basins. Currently, there are eleven (11) active Production Sharing Agreements (PSAs) which are operated by nine (9) Companies.   Exploration, development, and production activities as well as HGA negotiations for the development of offshore resources through LNG are ongoing.

The first onshore natural gas was discovered at Songo Songo Island in 1974 followed by Mnazi Bay in 1982, Mkuranga in 2008, Ruvu in 2017, and Ruvuma in 2018. These discoveries amounted to 10.41 TCF of Gas Initial in Place (GIIP). Songo Songo and Mnazi Bay gas fields have been developed and are producing gas for power generation, industries, households, and CNG for vehicles since 2004 and 2006, respectively. Significant offshore gas discoveries amounting   to 47.13 TCF GIIP were made between 2010 and 2014.


Tanzania Activity Map

 

Following the enactment of the Oil and Gas (Upstream) Act No. 6 of 2016, Zanzibar started an exploration of oil and gas in 2016 by establishing two institutions namely; Zanzibar Petroleum Regulatory Authority (ZPRA) and Zanzibar Petroleum Development Company (ZPDC) as upstream sector regulator and commercial entity respectively.

The Government of Zanzibar entered into a Production Sharing Agreement (PSA) with RAK GAS to explore and develop the Oil and Gas resources in Pemba – Zanzibar Block.  The preliminary 2D seismic interpretation results has shown the presence of approximately 3.8 TCF of natural gas.

Open Acreage

There are at least eight (8) open offshore Blocks which are expected to be licensed in the upcoming Licensing Round (5th Licensing Round) in Tanzania Mainland. On the other hand, the Government of Zanzibar launched its first Licensing Round on 20th March, 2024 in Zanzibar for 8 offshore Blocks. The bids submission deadline is 16th September, 2024 which will give companies six (6) months period to prepare and submit bids. The awarding process is expected to be completed by November 2024.

 

Blocks for the First Offshore Licensing Round in Zanzibar

 


TPDC Blocks

TPDC   has earmarked five blocks  namely Eyasi-Wembere, Mnazi Bay North, West Songo Songo, Lake Tanganyika, and Blocks 4/1B & 4/1C.  The Government has shown its intention to award exploration licenses for these Blocks to provide TPDC   with exclusive rights to undertake petroleum exploration on its own or through joint venture arrangements.  In light of this, TPDC is conducting various studies to understand the hydrocarbon potential of these Blocks. Further, TPDC has undertaken subsurface studies and identified drillable prospects in Mnazi Bay North and West Songo Songo Blocks and acquired 2D seismic data in Eyasi Wembere Block.  Currently, TPDC invites strategic partners with both technical and financial capability to execute the committed work plan in exploration and development of the hydrocarbon resources in these Blocks.

 

Seismic data acquisition in Eyasi Wembere rift basin.



Gas Production

Currently, Tanzania is producing about 250 mmscfd of natural gas from Songo Songo and Mnazi Bay Gas fields for Domestic use mainly for Power Generation.


Midstream and Downstream

The Government of Tanzania built a National Natural Gas Pipeline (551 km) from Mtwara to Dar es Salaam and Songo Songo to Somangafungu with a capacity of 784 mmscfd of natural gas and two processing plants at Songo Songo and Madimba with a capacity of processing 350 mmscfd and gas receiving facilities at Somangafungu and Kinyerezi. Tanzania has two processing plants operated by Songas and Maurel & Prom and TPDC with a capacity of 110 mmscfd and 10 mmscfd respectively.

Additionally, there are other two transportation pipelines; one operated by PanAfrican Energy from Songo Songo to Dar es Salaam (232 km) with the capacity to transport 105 mmscfd, and another operated by M&P and TPDC from Mnazi Bay to Mtwara (27km) with a capacity of transporting 70 mmscfd.

The produced natural gas is utilized in Tanzania mainly for power generation whereas for the year 2023 about 7,369.91 GWh which is equivalent to 71% of the total country’s power generation was from natural gas. Currently other uses of natural gas apart from power generation include industries, institutions, households for heating, cooking and power and to power cars in form of Compressed Natural Gas (CNG). The government of Tanzania is planning to distribute gas in other regions such as Morogoro, Dodoma, Tanga, Mwanza and Arusha. Likewise, Tanzania considers expanding the natural gas transportation pipelines and distribution network locally and regionally to countries such as Uganda, Kenya, Zambia and Malawi.

Liquefied Natural Gas (LNG)

The LNG project is being implemented following significant deep-sea gas discoveries made in Tanzania offshore basin, in Blocks 1, 2, and 4. Currently, the Government and International Oil Companies (Shell, Ophir, Pavilion, Equinor, and ExxonMobil) are finalizing negotiating the Host Government Agreement for developing the discovered natural gas for domestic use and export through the LNG project. The LNG project will be implemented in the Lindi Region.

 

East African Crude Oil Pipeline (EACOP) Project

The Government of Tanzania through TPDC is participating in the implementation of the East Af rican Crude Oil Pipeline project with an estimated length of 1443 km from Kabale, Hoima - Uganda to Chongoleani, Tanga – Tanzania. In Tanzania this pipeline will cover 1147 km passing through eight (8) regions (Kagera, Geita, Shinyanga, Tabora, Singida, Manyara, Dodoma and Tanga) and 24 districts (Misenyi, Bukoba Rural, Muleba, Biharamulo, Chato, Geita, Mbogwe, Bukombe, Kahama, Nzega, Igunga, Iramba, Mkalama, Singida DC, Kondoa, Chemba, Kiteto, Hanang, Simanjiro, Kilindi, Handeni, Korogwe, Muheza and Tanga City).

Tanzania through TPDC participates in this project with a fifteen percent (15%) share with other shareholders including Total Energies (62%), CNOOC (8%), and UNOC (15%). Under this project, we are currently finalizing land acquisition process where 9823 out of 9904 Project Affected Persons (PAPs) have been signed and paid the compensation. The construction for Early Civil Works has already started (Coating Yard, Main Camps & Pipe Yards, and Chongoleani Marine Storage Terminal).

 

Tanzania Deputy Prime Minister and Minister of Energy, Hon. Dr. Dotto Biteko inpects a pipes coating process for the EACOP Project as Sojo, Tabora, Tanzania during the inaguration of the East African Crude Oil Pipeline (EACOP) Coating Plant on 26 March, 2024.


The final detailed engineering designs and procurement of pipelines and long lead items, and project financing process is ongoing where 400km line pipes have already been delivered in Tanzania. The construction of the Coating Thermal Insulation Plant has been completed. The pipeline construction is scheduled for May-June 2024 for 24 months.

 

 


Geologists and professionals in the oil industry became fascinated with Somalia’s geology and its oil and gas potential in the 1920s. Most of the land and the continental shelf of Somalia (marine), nearly 90% is underlain by a sedimentary section of varying thickness ranging from 2000 m to more than 5000 m.

Available are source rocks that generate oil and gas, reservoir rocks that are supposed to keep the oil or gas in place, and the existence of other necessary traps, seals, and structures that keep oil/gas in place.

Practically exploration started as early as 1948. The first exploratory well was Sagaleh – 1 well in what is now Puntland in 1956 and since then six sedimentary basins were recognised in Somalia.

 

Somalia Major Hydrocarbon Basins


In the past, many companies came in and were awarded exploration acreages. The companies carried out gravimetric, magnetic, seismic surveys and exploratory drilling. Some companies relinquished their exploration rights and some held to their concession areas until Somalia became unstable and the state collapsed in 1991.

Major companies such as Conoco-Phillips, BP, Shell (Pectin), Chevron, ENI (Agip), Total and others declared “force majeure” until Somalia became more stable again and business resumed as usual. That moment seems to be approaching and many companies are keeping their eye on Somalia.

There are companies who tend not to wait for the mainstream to kick in and instead, they are ready to start exploring the potentiality of Somalia basins.

 

Upstream Activities


Somalia's potential for oil exploration attracted the attention of Exploration and Production (E&P) companies as early as the 1950s, largely due to its geological similarities with the oil-rich Gulf States.

Both onshore and offshore, the country is characterized by vast deposits of thick sedimentary rock formations, which are considered promising indicators of significant hydrocarbon reserves.

After successful discovery within the Yemeni Jurassic basins during the 1980s that has the same geology as Northern Somalia, a great deal of renewed interest was shown in the country.

Recent years have seen major discoveries along the East African margins of Kenya, Tanzania and Mozambique. However, the Somali Indian ocean Basin remained underexplored.

The Somali Basin shares common geological setting and history with the Tanzanian Pemba and Mafia Basins, the Rovuma Basin in Mozambique, and Lamu Basin in Kenya.

Approximately 72 wells have so far been drilled in Somalia, with 8 wells offshore and the other64 wells were drilled in onshore. All offshore Wells were drilled near the coast line in the continental shelf with a depth not exceeding 1000m.

There has not been a commercial discovery, nonetheless, some oil and gas shows were encountered in some wells during the exploration phase and some oil seeps are present both offshore and onshore. Besides, there has been poor quality data and the use of wrong geologic models that might have hindered any actual discovery.

 

Recent data collected

In 2014, Soma Oil and Gas conducted a comprehensive seismic acquisition program aimed at exploring Somalia's offshore potential. Concluding in June 2014, the initiative successfully acquired over 20,500 km of 2D seismic data across an expansive 185,000 km² offshore evaluation area.

In 2016, a Multi-Client Seismic Survey was conducted in collaboration with Spectrum, aiming to further assess Somalia's offshore oil and gas potential.

In a strategic effort to promote offshore petroleum exploration and evaluate Somalia's vast potential, the Ministry of Petroleum and Mineral Resources signed a multi-client seismic survey agreement with Spectrum. As part of this initiative, Spectrum successfully completed the acquisition of over 28,500 km of 2D seismic data in Somalia's offshore waters. The survey, which commenced in December 2016, was carried out without any security or Health, Safety, and Environmental (HSE) incidents.

Offshore Somalia, the seismic data from the 2014 survey and the current seismic grid have revealed three distinct basins, each characterized by unique structural regimes:

  • Obbia Basin in the north
  • Coriolle Basin in the central region
  • Juba-Lamu Basin in the south

This new seismic data from offshore Somalia revealed extraordinary structures, in an oil-prone frontier province that has never been seen or explored before.

The 2D seismic acquisition programmes undertaken in 2014 and 2016 have facilitated the development of new theories and understanding of the passive margin.

The Somalian margin is sure to yield numerous exciting oil plays at multiple stratigraphic levels.

The Turkish seismic research vessel, Oruc Reis, is scheduled to arrive in Somali coastal waters by the end of October 2024. Over the course of the following seven months, the vessel will conduct a comprehensive 3D seismic survey, marking a significant step in Somalia's ongoing efforts to explore and harness its offshore hydrocarbon potential.

This advanced survey will provide detailed insights into the subsurface structures, further enhancing the country's understanding of its offshore energy resources.

 

Somalia offshore licence blocks map

 

Current Offshore Blocks in Somalia


The Greater Somali territory landmass and marine exclusive economic zone (EEZ) has been divided into 206 exploration blocks of 5000km2 each.

Since 2022, the Ministry of Petroleum and Mineral Resources (MOPMR) and the Somalia Petroleum Authority (SPA) have awarded blocks to different IOC’s, such as:

  • Coastline Exploration Company (7 blocks)
  • Liberty Petroleum  (3 blocks)
  • Turkey Petrolleri  (3 blocks)

 

Downstream Activity

The inauguration of the new Liquefied Petroleum Gas (LPG) storage center in Banadir represents a watershed moment in Somalia's efforts to promote environmental sustainability and economic growth. This initiative is part of a broader strategy aimed at combating deforestation and curbing environmental degradation in the region.

New LPG (Liquefied Petroleum Gas) Storage Center in Banadir.


By reducing the cost of LPG, the program aims to make clean energy more accessible to all households, providing a sustainable alternative to traditional fuel sources.

"Affordable gas is a vital step towards building a sustainable and self-sufficient Somalia," highlighted leaders during the event. The opening of this LPG storage facility signals Somalia’s strong commitment to environmental stewardship and its pursuit of a more prosperous economic future.

President of the Federal Republic of Somalia, H.E Hassan Sheikh Mohamud Inaugurates the New LPG (Liquefied Petroleum Gas) Storage Center in Banadir, Marking a Major Milestone in Somalia's Clean Energy Transition

 

 

Every two (2) years, the East African Community Partner States organize a Conference and Exhibition on the Petroleum Potential and Investment Opportunities in East Africa. The East African Petroleum Conference & Exhibition (EAPCE) is recognized globally as a premier international forum for those working in the upstream petroleum sector. Participants include oil companies, researchers, investors, service providers, academia and financiers among others. Participants exchange ideas and information about recent developments in the region, learn about new investment opportunities and share lessons learnt.

The East African Community Partner States will host the 11th East African Petroleum Conference and Exhibition 2025 (EAPCE‘25) on the Petroleum Potential and Investment Opportunities in East Africa in Dar es Salaam, Tanzania, from 5th to 7th  March, 2025. For the three (3) days, Dar es Salaam will become the place for the oil and gas industry players to gather, collaborate, conduct business and experience the showcasing of achievements in the sector under the theme: "Unlocking Investment in Future Energy: The Role of Petroleum Resources in the Energy Mix for Sustainable Development in East Africa.”
 
Oil and gas exploration in the East African Community has shown significant progress, with major activities centered in Uganda, Kenya, and Tanzania. Uganda stands out as a key player following the discovery of substantial oil reserves in the Albertine Graben region. The development of the Tilenga and Kingfisher projects, alongside the construction of the East African Crude Oil Pipeline (EACOP), underscore Uganda's commitment to becoming a major oil producer.
 
Kenya and Tanzania are also making strides in their oil and gas sectors. In Kenya, the Lokichar Basin has been the focal point of exploration efforts, and Kenya remains optimistic about its potential to become an oil-exporting nation. Meanwhile, Tanzania has focused more on its vast natural gas reserves, particularly in the offshore fields near Mtwara. The Tanzanian Government has been working to attract investments for the construction of a liquefied natural gas (LNG) plant, which would enhance the country's capacity to export gas. Both countries, like Uganda, face challenges related to infrastructure development, regulatory frameworks, and securing sufficient investment, but their ongoing efforts highlight a regional commitment to leveraging hydrocarbon resources for economic growth.

 

Similarly, Rwanda, located in the East African Rift's Albertine Rift segment, has been actively pursuing hydrocarbon exploration since 1971. Significant efforts include 2D seismic surveys in 2012 and high-resolution 2D seismic surveys have mapped the Lake Kivu Basin's subsurface, revealing potential hydrocarbon traps and key exploratory drilling locations. Additionally, the country's favorable geological conditions, combined with robust economic growth and a business-friendly environment, have attracted substantial investor interest in securing exploration blocks and furthering Rwanda's petroleum production potential.
 
Petroleum exploration in Burundi focuses on the Rusizi and Lake Tanganyika Basins, part of the East African Rift System. Geological, gravimetric, aeromagnetic, and seismic surveys indicate sediment thickness exceeding 3,000 meters, with exploration divided into four blocks: A in the Rusizi Basin (onshore) and B, C, and D in the Lake Tanganyika Basin (offshore). Although Blocks C and D were granted to A-Z Petroleum Products Limited and Surestream Petroleum Limited respectively, fieldwork was suspended due to falling crude prices, leaving all blocks currently open for potential investors.

The petroleum resources discovered in the East African region are estimated at 2 billion barrels of oil in place and 3tcf of natural gas. Additional resources continue to be discovered by aggressive exploration programmes in the region.

Each of the previous ten Conferences has been more than just an international conference for it has integrated cultural & touristic dimensions unique to East Africa. EAPCE’25 will, like the previous conferences, provide participants with not only the opportunity to assess the developments in the petroleum upstream sector in East Africa but also to explore the many and varied attractions of this large region that is known in Africa for its unique and diverse beauty.


EAPCE’25 will feature an exceptional programme of technical papers, research posters with an impressive line up of invited speakers and panel participants together with innovative exhibitions. Immediately before and after the Conference there will be a diverse range of opportunities for delegates to enjoy geological field excursions and tours of wildlife conservation areas across the region.

 

 
Often called “The Heart of Africa” and covers an area of 27,834km2. Burundi is landlocked and borders Rwanda, Tanzania and Democratic Republic of Congo, thus forming part of the Central African Region.

Various studies have been conducted since 1959 for petroleum exploration both in the Rusizi Basin and in the Lake Tanganyika Basin. These basins are part of the East African Rift System and are located between Burundi, the Democratic Republic of Congo, Tanzania and Zambia.
 
This Rift System is dated from Cenozoic (Tertiary) and is divided into two branches the eastern arm and the western arm. The Lake Tanganyika and the plain of Rusizi belong to the western branch which consists of sedimentary basins marked by deep Lakes (Malawi, Tanganyika).

In Burundi, these basins cover an area of 2,968.1km2. Geological studies, gravimetric, aeromagnetic and seismic surveys have been conducted in the two basins and the average sediment thickness is estimated to be more than 3,000 meters.

 

Burundi map of proposed blocks of Petroleum exploration
Burundi map of proposed blocks of Petroleum Exploration
 
The exploration areas of Rusizi and Lake Tanganyika basins have been divided into four blocks: A (793.1 km2), B (697.1 km2), C (664 km2) and D (813.4 km2).
 
Block A is on Rusizi Basin which is onshore while blocks B, C and D are offshore in Lake Tanganyika Basin from North to South respectively.
 
The Government of Burundi continues to encourage oil companies to invest in petroleum exploration. It is also reviewing the Petroleum Code dated 1976 for attracting more investors.
 
Blocks C & D were granted to A-Z Petroleum Products Limited and Surestream Petroleum Limited respectively for exploration.
 
However, with the fall of crude prices, fieldwork on these blocks was suspended. The four blocks are currently open and available to potential investors.

 

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11th East African Petroleum Conference & Exhibition 2025 (EAPCE'25).
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