Oil: Minister tables pipeline, production pacts in House 

Irene Muloni

OIL|PARLIAMENT

Energy minister, Irene Muloni, has tabled in Parliament the intergovernmental agreement between Uganda and Tanzania on the development of the crude pipeline. 

The minister also tabled another agreement between Uganda and Amour Energy Limited for oil exploration in Kyanywataba block in the Albertine graben on Tuesday. 

Muloni was giving the House the status of the oil industry, including exploration, development and consumption. Uganda has discovered 6.5 billion barrels of oil resources and has opened a new exploration round.

According to the exploration agreement for Kanywataba block, Armour Energy Limited will explore for oil in Ntoroko district for a period of four years. The block is 344 square kilometer in size. 

The intergovernmental agreement requires the two governments, among others, to guarantee safety of movement of personnel and construction materials for the crude pipeline and stabilisation of the legal regime.

The construction of the 1,445km pipeline between Hoima in Uganda and Tanga in Tanzania is expected to cost an estimated $3.5m. 

Muloni explained that the Front End Engineering Design (FEED) study for the pipeline which is currently underway will be completed in October. 

The environmental studies for the pipeline is also expected to be complete in January, and a final investment decision for the project taken in the first quarter of the 2018/2019 financial year.

The minister also reported that the Government is still searching for the investor that will finance and operate the 60,000 barrels per day refinery to be established in Kabaale in Hoima.