The Deputy Governor of the Bank of Uganda, Michael Atingi-Ego, has revealed that oil investments have helped Uganda stabilise its US Dollar exchange.

Atingi-Ego made the revelation while on a guided tour of the oil fields in the Albertine region alongside Stanbic Bank CEO Anne Jjuuko and Ernest Rubondo the Director of the Petroleum Authority of Uganda.

He said the portion of money being added to the local content from the amount of foreign money coming up on accounts of oil activities has helped in the stabilisation of the dollar exchange.

“Our estimate is that in the past, only 30% of the total amount of direct foreign investment (FDI) in some banks at local content. That is the money that is sold in the foreign markets and it has helped to stabilise the exchange,” Atingi-Ego said. 

He added that once the production of oil starts, it is going to unlock the value chains as well as increase foreign exchange earnings and conserve foreign expenditure.

Rubondo assured the country that Uganda’s oil projects are moving forward despite negative voices from Western actors calling for its halting.

(L-R) PAU’s Ernest Rubondo, Stanbic Bank CEO Anne Juuko, Dr Micheal Atingi-Ego and CNOOC Uganda president Liu Xaingdong. Courtesy Photo

“We cannot sit here and accept to be bulldozed into a situation which is not applied to other countries so they need to say what their objective is but clearly their objective is not climate change anymore,” Rubondo said.

Progress

Meanwhile, the overall progress works at the Kingfisher Oil Development Field at the lake shores of Lake Albert in Buhuka landing site, Kikuube District, stands at 53%.
It is being developed by the China National Offshore Oil Corporation (CNOOC). 

Zakaliya Lubega, the corporate affairs officer at CNOOC Uganda, noted that they have completed drilling and sealed three oil wells at well pad 2 and currently, they are de-assembling it and moving it to well pad 3.
Lubega added that at well pad 2, they have drilled and reached into oil reservoirs of three oil wells out of ten.

He said other development components including the central processing facility and the feeder pipeline are taking shape.

Drilling at Kingfisher Oil Development Field was launched by President Yoweri Kaguta Museveni on January 24, 2023.

Uganda expects to start extracting oil in 2025.