East Africa is set to become a major producer of oil and gas in the next few years, according to a regional conference on petroleum held in Mombasa last week.

Uganda could start commercial production of petroleum in the first quarter of 2010, said Fred Kabagambe-Kaliisa, Permanent Secretary in the Ministry of Energy and Mineral Development.

He told delegates at the fourth EA Petroleum Conference, organised by the EAC Secretariat, that Uganda had made 13 discoveries in the Albertine Graben area over the past two years, with over one billion barrels of oil in store.

“Flow rates of over 12,000 barrels a day confirm excellent delivery abilities,” he said.

The Albertine Graben is 500km long and averages 45km wide. It borders the Democratic Republic of Congo (DRC).

The 13 discoveries are in Turaco, Waraga, Mputa, Nzizi, Kingfisher, Taita, Ngege, Karuka, Kasamene, Kigogole, Ngiri, Jobi and Rii. Exploration of other areas is underway.

Over the past 10 years, foreign direct investment in the sector has risen to more than $500 million, said Ernest Rubondo, Uganda’s Acting Commissioner for Petroleum Exploration and Production Department.

“The oil discovery will support local and regional demand, which is at 150,000 barrels and growing at five per cent,” he said, quoting an EAC study done in 2007.

Meanwhile, almost six decades of petroleum exploration has put Tanzania on the world map of gas producers, following the discovery of four fields.

These are: Songo Songo Natural Gas (in 1974), Mnazi Bay Natural Gas (in 1982), Mkuranga Gas (in 2007) and Kiliwani North Gas (in 2008).

“Two of them are producing commercially [Songo Songo and Mnazi Bay] while two others [Mkuranga and Kiliwani] are being appraised,’’ said Kejo Kajato, chief exploration geologist of the Tanzania Petroleum Development Corporation.

The gas is mainly used for power generation for Mtwara and Lindi regions.

A pipeline supplying gas to power-distressed Dar es Salaam has been connected to Ubungo power plant, and efforts are being made to supply gas to other areas of the commercial city.

The EAC has approved a line supplying gas from Dar es Salaam to Tanga into Mombasa.

Studies are also underway for use of gas in the production of fertiliser and cement, in petrochemical industries, and in additional power generation, said Mr Kajato.

He added that 22 production sharing agreements over exploration areas covering onshore, offshore shelf and deep sea basins are in operation currently.

“There are three licences still being negotiated on three of the inland basins,” he said.

Kenya energy expert Hudson Andambi said his government was making concerted efforts to improve conditions for exploration and future development as well as production of hydrocarbons.

“The government hopes to encourage oil companies to invest in the country,” he told more than 500 delegates comprising researchers, oil companies, businesspeople and scientists.

Exploration for oil and gas is active, both onshore and offshore, with the government having signed production sharing contracts with international oil companies for 19 out of the country’s 38 acreage blocks in Tertiary Rift, Anza, Mandera and Lamu.

“There are a number of companies currently negotiating with the Kenyan government for open acreage, both onshore and offshore,” said Energy Minister Kiraitu Murungi.

Rwanda has already struck methane gas in Lake Kivu, and is currently producing 2 MW power.

When fully operational, there is a capacity to produce 800 MW of power, said Yussuf Uwamahoro, Rwanda’s energy sector co-ordinator.

It is estimated that 150 to 250 million cubic metres of methane gas are generated annually in Lake Kivu.

This is equivalent to 40 million tonnes of oil and can generate energy for a 700 MW power plant for 50 years, at an extraction rate of one billion cubic metres of methane a year.

Burundi has also started exploration in Rusizi and Lake Tanganyika basins.

“Recent satellite data indicate a possibility of oil in Rusizi and Lake Tanganyika basins,” said Burundi’s Minister for Water, Energy and Mines, Dr Samuel Ndayiragije.

“There are excellent chances of discovering oil soon,” he told The EastAfrican in Mombasa.

However, although the oil and gas prospects look rosy, East Africa has inadequate experts and insufficient infrastructure and policies to ensure that hydrocarbons serve the region and, later, the export market without damaging the environment.

Opening the conference, President Mwai Kibaki called for “capacity building, especially at this time of increased petroleum exploration.”

He added that experts must be trained in all critical disciplines, including reservoir and petroleum engineering.

President Kibaki asked multinational oil companies to assist in technological transfer and training of local personnel.

Oil and gas exploitation require an efficient, cost effective infrastructure, President Kibaki said, adding that the EAC was spearheading several initiatives on this.

He called for proper management of revenue generated by hydrocarbons.

“The EAC Secretariat will study the modalities of ensuring prudent management of petroleum revenues to ensure that hydrocarbons become a blessing — not a curse — for the region.”

Prospecting companies were told to adhere to environmental and social impact requirements.

“There must be a balance between profit maximisation and environmental preservation,” said Dr Nyamajeje Weggoro, the conference co-ordinator.