The Kanywataba prospect area in Exploration Area 3A (Southern Lake Albert), has reverted to the Government of Uganda, following the expiry of the six months Exploration licence which was issued Tullow Oil in February 2012. The licence, which was issued in recognition of the time lost during the tax dispute over the sale of Heritage’s interests in Uganda to Tullow, was to enable the drilling of an exploration well on the Kanywataba Prospect.
Following the farm-down by Tullow Oil to the French major TOTAL and China’s state owned giant CNOOC in February 2012, CNOOC was appointed operator of the area and subsequently drilled the Kanywataba-1 well in May 2012 to a total depth of 2105metres. The well did not encounter hydrocarbons and therefore the area reverted back to Government upon expiry of the six months period in August 2012. “This area, which is undergoing restoration, remains prospective and will be available for future licensing after the new legislation is passed by Parliament”, the Uganda government says. “The companies licensed to undertake petroleum exploration, development and production in the country will continue to undertake agreed work programmes in the other licensed areas”.