To explore oil in its western region, Uganda and a division of the Australian company DGR Global (DGR.AX) inked an agreement to share production (PSA) on Friday.
The Turaco block, a region of 637 sq km (246 sq miles) in the Albertine quiet Rift Valley that spans the border between the African nation and the Democratic Republic of the Congo, will be the focus of exploration by DGR Energy Turaco Uganda Limited.
In the country’s second licensing cycle, which was launched in the year 2019, Turaco was a single of five zones put into auction.
The COVID-19 epidemic had caused a delay in the round’s execution since travel restrictions had an impact on the procurement and negotiation phases, she continued.
The agreement grants DGR Oil four years of exploration. Commercial deposits of hydrocarbons were found in Uganda in 2006, and resources are estimated to be worth 6.5 billion barrels.
On Friday, Armour Resources Uganda Ltd, a different division of DGR Global, which is received an additional two years of its exploration license within the Kanywataba area. It began investigating there in 2017.