President Museveni has said Uganda’s effort towards petroleum exploration over the last years has resulted into confirmation of commercial quantities of oil and gas resources.

He said the country is initially estimated to have 6.5 billion barrels of oil in place, with 1.4- 1.7 billion barrels being recoverable.

PM Rugunda in a group photo with key stakeholders in the Oil and Gas sector who attended the 4th Annual Oil and Gas Convention at Kampala Serena Hotel on Thursday (Photo by PMPU)

The President made the remarks in his speech which was delivered by the Prime Minister, Dr. Ruhakana Rugunda during the 4th Annual Oil and Gas Convention organized under the theme “Regional Collaboration for First Oil” at Serena Hotel in Kampala on Thursday.

The event offers a platform for various stakeholders to share information on the country’s Oil and Gas Industry and also get prepared to support the various activities that will deliver first oil by 2020.

President Museveni said the National Oil and Gas policy which was formulated by Government in 2008 to provide a frame work for the development of the country’s Oil and Gas resources will enable the country to use the resources to eradicate poverty and create a lasting value to society.

He said the country’s Oil and Gas industry has already entered into the development and production phase, following the issuance of production licenses to Tullow and Total E&P Uganda in 2016, and the earlier issued license to CNOOC Uganda LTD in 2013.

In addition, Museveni said significant efforts have been undertaken by the government to ensure that the petroleum resources generate maximum value to enable the country achieve a middle income status as outlined in Vision 2040.

“In November 2017, Government commissioned the construction of the 1445 Km East African Crude Oil Pipeline from Hoima to Tanga and the project is estimated to cost $3.55billion. Early this month, Government also signed an agreement with a consortium of American and Italian firms to finance and construct a US $4 billon refinery in Hoima District,” Museveni said.

He also said government is working to resolve the numerous challenges undermining the participation of key stakeholders in the Sector and has already addressed some of them.

“In the area of supportive infrastructure, Government has expanded electricity generation and access to address the growing demand for electricity. We have also commenced the development of a 2nd international airport in Hoima district and efforts are underway to build the standard gauge railway,” the President said.

He said a number of communication and road networks have been upgraded and some under improvement to support the development of Oil and Gas resources in the country.

Museveni also said progressive efforts are being made to skill Ugandans for the Oil and Gas Industry through offering training at Uganda Petroleum Institute Kigumba, Petroleum Training at Makerere University, Kyambogo University and other private sector training institutions.

He commended the Uganda Chamber of Mines and Petroleum for offering leadership in the Oil and Gas sector and taking on promotional efforts to attract investors and International tourists in the country.

The President pledged government’s continuous support to the Uganda Chamber of Mines and Petroleum to enable it carry out its roles and intended objectives.

The Senior Vice President, for Africa, Total E&P, Guy Maurice said CNOOC Ltd, Total and Tullow PLC have already finished the exploration phase and are now headed into the development phase, which will lead to the production of Uganda oil resources.

He said once production has taken place, the crude oil will be partly refined in Uganda to supply the local market and partly exported to the international market through the East African Crude Oil Export Pipeline.

Ends 

Thursday, April 26, 2018

BY DOREEN NASASIRA