Uganda’s Ministry of Energy and Mineral Development said that his country has chosen Nigerian firms WalterSmithPetroman Oil Limited, Oranto Petroleum International, and Niger Delta Petroleum Resources, together with Australia’s Armour Energy Limited to join negotiation on Uganda’s production sharing agreements for oil exploration licenses covering a total of 3,000 square km, Reuters reported.

Bidding documents were issued to 16 oil firms but only seven submitted bids. The selected companies will negotiate for five production sharing agreements (PSAs) covering four blocks, according to Pulse Nigeria .

The ministry said that negotiations for these PSAs is the final milestone before granting exploration rights, with the discussions covering exploration work programmes and how the financial proceeds will be shared.