Nigerian billionaire Arthur Eze, the founder of Oranto Petroleum Limited, recently achieved a significant milestone in the oil industry. On December 22, Oranto Petroleum was granted a two-year extension on its exploration license in the Ngassa Deep and Ngassa Shallow areas in Uganda. This extension is a crucial step for the Nigerian independent energy company, enabling them to drill an exploration well and an appraisal well, depending on the outcomes of the initial well.
How it started out
Back in October, the future of Oranto Petroleum’s operations in Uganda seemed uncertain. The company’s oil exploration licenses in the Kikuube district, which include the Ngassa Shallow and Deep Play, were on the brink of expiration. Reports from Billionaires. Africa at the time indicated skepticism from high-ranking officials in Uganda’s Ministry of Energy. There were doubts about whether Prince Arthur Eze and his companies had the necessary funds for continued exploration in the Lake Albert region.
However, this skepticism was overcome when the Ministry of Energy and Mineral Development in Uganda decided to extend the licenses. Initially awarded in 2017, these licenses have now been renewed, with Oranto committing to fully utilize the additional time to achieve successful exploration results.
What this means for Arthur Eze
In response to this favorable outcome, Prince Arthur Eze, the chairman of Oranto, expressed his deep gratitude towards the Ugandan government, especially President Yoweri Museveni, the Ministry, and the people of Uganda. He recognized the importance of this extension in potentially boosting Uganda’s oil volumes. Additionally, he assured the Ministry that Oranto would fulfill the required work program within the newly allocated timeframe.
The permit extension aligns with Uganda’s objective to increase its recoverable oil reserves, estimated at 1.4 billion barrels. The renewal terms include a production-sharing agreement, as well as specifications on royalties, cost recovery, and profit sharing.
The Ngassa block, situated in the Hoima District, is part of the Albertine Graben, an area of significant interest in the African oil industry. Oranto Petroleum, together with its sister company Atlas Petroleum, is now Africa’s largest privately-held exploration and production group in terms of acreage.
Atlas Oranto boasts a formidable presence across Africa, holding 22 oil and gas licenses in various countries, including Equatorial Guinea, Senegal, South Sudan, Sao Tome and Principe, Uganda, and Zambia.
In conclusion, this license extension for Oranto Petroleum is a business achievement for Arthur Eze and a testament to his determination and vision in the African energy sector. Established in 1991, his company makes significant strides, contributing to the continent’s energy independence and economic growth. This recent development in Uganda is a clear indication of Oranto’s steadfast commitment and Eze’s profound impact on the African oil industry.
About Author
