Nigerian billionaire Arthur Eze’s oil exploration licenses in Uganda have expired

Oranto Petroleum Limited (OPL), owned by Nigerian billionaire Arthur Eze, recently saw its oil exploration licenses in Uganda’s Kikuube district, specifically for the Ngassa Shallow and Deep Play, expire. These licenses were first granted on Oct. 17, 2017.

Inside sources at the Ministry of Energy have reported mixed reactions regarding the expiration, with some questioning if Eze-backed OPL possesses the necessary funds for continued exploration in Lake Albert. Eze, who also heads Nigeria’s largest private petroleum firm, Atlas Oranto Petroleum, has faced speculation about potential challenges arising from the operational area.

One primary concern surrounds the company’s adherence to the renewal procedures as outlined in the Petroleum (Exploration, Development and Production) Act, 2013. The legislation mandates license renewal applications to be submitted at least 90 days before expiration. It remains unclear if OPL met these requirements.

Despite the ongoing uncertainties, Honey Malinga from the Directorate of Petroleum stated that OPL submitted work programs for review. The company was initially chosen in a competitive round for six blocks in the Albertine Graben, along with Australia’s Armour Energy Limited.

Latest updates from the Petroleum Authority Uganda show that OPL has acquired 326 line km of new 2D seismic data and finished a drilling solution for Lake Albert. Past statements by the then Minister of Energy, Irene Muloni, lauded the company’s licenses as a pivotal achievement for Uganda, emphasizing the importance of thorough exploration.

At the outset of these agreements, Eze expressed a strong commitment to significant investment in Uganda.