Business
Petroleum value chain to get standards
Publish Date: Feb 03, 2014
Petroleum value chain to get standards
  • mail
  • img
newvision

By Vision Reporter

Uganda has started the process of setting up standards and codes to govern the petroleum value chain.


The process started last week with the launch of a 16-man technical committee composed of various experts from the academia, the industry, private sector, security and technocrats.

The committee will provide for the formulation and harmonisation of standards for the downstream, midstream and upstream petroleum operations, which are critical to the development of the oil and gas sector.

Kabagambe Kaliisa, the permanent secretary of the energy ministry, said there is urgent need to expedite the development of standards for the entire petroleum value chain.

“This calls for standards and codes that can be adopted locally and also meet international requirements,” he said in a speech read by John Bosco Habumugisha, the assistant commissioner in charge of pipeline development.

“Aspects of safety, security, health and environment are of paramount importance in ensuring effective regulation of the oil and gas sector, hence the need for appropriate standards and codes.”

Kaliisa said it is important to involve stakeholders because they have many roles to play and “this will enable us to consult with you on how we can move forward in the country’s pursuit of commercialising the oil and gas resources.”

Uganda’s petroleum sector has grown over the years with commercial discoveries of oil registered in 2006 and currently standing at more than 3.5 billion barrels. About 1.7 billion barrels are recoverable.

The Government is taking steps towards the production phase. The first production license was issued late last year to Chinese firm CNOOC Uganda.

Irene Muloni, the energy minister, said stakeholders need to carry out their roles responsibly, especially since the oil and gas sector is a high risk, but highly rewarding industry.

“The operations are capital intensive and require significant investments prior to actual production. The oil and gas sector is international given that the majority of the oil companies operate globally across the value chain,” she explained.

“But the sector has the potential to disrupt other sectors of the economy if it is not well managed or regulated. This standards development process is intended to contribute positively to the proper regulation of the sector,” Muloni added.

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Inflation rises to 1.4%
Consumers paid sh1.4 more for manufactured goods in October compared to the same period in 2013 as the sector struggled to recover from the lag-effects of the 2011 economic challenges, amid volatilities in foreign exchange....
Kukustar: New vaccine against newcastle to empower farmers
It was the welcoming smiles. Not the long distance from Mbale town. Not the shrubby path to Mary Goretti Mboizi’s humble home in Bunamwera village, Kibuku district that struck me as I settled down to listen to her story....
Uganda is debt sustainable, says finance ministry
By March, China had lent Uganda over $336m (8% of the total debt) while India had lent over $50m (under 2%)....
Partnership seeks to boost television penetration
PCS and a regional pay television service provider enter a partnership expected to boost television penetration in areas without access to hydroelectricity....
Govt allocates sh20b for restocking
THE Government has allocated sh20b for livestock restocking in West Nile, Acholi, Lango and Teso sub-regions in the 2014/15 financial year...
Power extended to Masaka sub-counties
The sub-counties benefiting from the project are Kyesiga, Lwankoni, Kyanamukaka and Kabira with a total population of about 60,000 people...
Do you agree with the ban on the export of maids?
Yes
No
Can't Say
follow us
subscribe to our news letter