Business
Transforming Uganda’s black gold to green gold
Publish Date: Mar 09, 2014
Transforming Uganda’s black gold to green gold
Eng. Irene Muloni, the Minister of Energy and Mineral Development.
  • mail
  • img
newvision

By Ibrahim Kasita

GOVERNMENT will utilize its discovered petroleum resources to create green gold from the black gold.  This was revealed by Eng. Irene Muloni, Uganda’s Minister of Energy and Mineral Development while addressing delegates attending the CERA WEEK 2014, IHS Energy’s annual executive conference that was held in Houston, Texas USA.

“Uganda is an agricultural country and we will use the revenues from this natural resource to create lasting value through upgrading our infrastructure, mechanizing agriculture, increasing access to energy for the population and protecting our environment,” Eng. Muloni said.

Uganda has proven petroleum resources currently estimated at 3.5billion Barrels of oil in place. The discovery was made in 2006 in the Albertine Graben.

In her remarks Eng. Muloni noted that it is an exciting time for Uganda with significant progress being made in the oil and gas sector.

“The finding cost for oil in Uganda is US $1 per barrel which is one of the lowest in the world.  This coupled with a drilling success rate of above 85% makes Uganda an attractive destination for investment,” she added. World over, the drilling success rate averages between 10% and 30%.

Government of Uganda recently signed a Memorandum of Understanding with the Licensed Oil Companies operating in the country on the commercialization plan for the discovered petroleum resources in the Albertine Graben.

The plan includes the use of petroleum for power generation, supply of Crude Oil to the refinery to be developed in Uganda and export of Crude Oil through an export pipeline or any other viable options.

“We are in the process of developing a 60,000 barrels per day refinery through a Public-Private-Partnership and the selection of a lead investor to partner with Government is underway and will be completed mid-2014.”

Three oil companies, Tullow, Total and CNOOC are currently licensed to undertake oil exploration in Uganda’s Albertine Graben with CNOOC already having a production license. 

The Uganda Parliament recently passed two pieces of legislation that among other things, provide for licensing through open competitive bidding rounds and the establishment of a regulatory institution and a National Oil Company.

“Recoverable resources stand at 1.7 billion barrels from only 40% of the area with potential.  Licensing rounds for unlicensed acreage, starting with areas that have good data coverage will be held in 2014/15.  The potential for additional resources in the country is a reality” Eng. Muloni explained.

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
Libyan government injects sh180b to revamp Utl
The Libyan government has injected $56m to revamp Uganda Telecom Limited (Utl) that has been facing serious financial problems, the Libyan Foreign Affairs minister, Mohamed Dayri has revealed....
China eyes more investment opportunities in Uganda
A group of Chinese investors have expressed interest in investing more funds in different sectors which range from agriculture, mining, manufacturing, real estate among others in the country....
UAE Exchange celebrates customer loyalty
Every year, UAE Exchange commemorates its customers, by celebrating Customer Loyalty from 1st to 10th June, 2015. Special discounts, offers, promotions, are conducted giving an opportunity to customers to win exciting prizes....
The future of e-business and its contribution to Uganda
Going forward, business owners in the country albeit not all, ought to review their business s and plug in to e-commerce....
KCCA bans posters in city
As we draw closer to elections and campaigns, Kampala Capital City Authority (KCCA) has issued a warning to all those who intend to place posters and advertisements to seek the authority's permission and clearance or face the law...
Sudhir’s tenants protest paying rent in dollars
Over 100 traders renting on Sudir Rupareria’s shopping mall on Market Street, on Monday morning took to the streets protesting paying their monthly rent charges in US dollars...
With Eddie Kenzo’s win at the BET awards, is Ugandan music being recognized worldwide?
Yes
No
Can't Say
follow us
subscribe to our news letter