Government Allocates Shs188.2b For Oil Development

The government of Uganda has in the new 2016 – 2017 national budget allocated money to fund commercialization of oil and gas resources in the country, the Minister for finance, planning and economic development, Matia Kasaija, said while presenting the budget to the nation. “Madam Speaker, I have allocated Shs188.2 billion to implement programmes for oil and gas development, and institutional and skills development including operationalizing the National Petroleum Authority and establishment of the National Oil Company.” The money comes at a time when the country is advancing towards production stage. The minister also revealed that negotiations with the Lead Investor for the Oil Refinery project are expected to be concluded by September 2016. He also said land acquisition for the Refinery Development is 97% complete and 533 acres of land have been acquired in Kyakaboga, Buseruka sub-county, Hoima district for the physical resettlement of the Project Affected Persons who…

President Museveni Says Oil Production Will Start In 2020

Uganda’s long serving president, Yoweri Kaguta Museveni, has said the East African country will ‘start pumping out our oil’ in 2020, momentarily answering the question of when the country will start extracting its natural resource. Uganda boasts of 6.5 billion barrels of proven oil reserves waiting for extraction in the Albertine Graben, western Uganda. The president made the disclosure in his speech during the reading of the National Budget for the Financial Year 2016-2017 at Serena Hotel in Kampala. The Shs26 trillion budget was read to the nation by the Minister of Finance, Planning and Economic Development Matia Kasaija, MP for Buyanja County in Kibale district. Earlier projections had named 2018 as the year wountry will start producing her oil, a deadline which has not been achieved considering that the country has not put in place needed infrastructures to enable production of oil. The country has however made key milestones…

Museveni Retains Natural Resources Ministers In New Cabinet

President Yoweri Museveni as a sign of confidence has retained Irene Muloni as the senior Minister of Energy and Minerals, a docket that also covers the emerging oil and gas sector. The president also retained Simon D’Ujanga as Minister of State for Energy and Peter Aimat Lokeris as Minister of State for Minerals. The president released the new cabinet Monday, 7 June, 2016. The 80 man list sees a mix of old faces and new comers that will tasked in the executing government programs. During his swearing in speech as president, President Museveni said the next term in office will be year of working to make Uganda a middle income earner. President Museveni first appointed Muloni in this docket On 27 May 2011 replacing Hilary Onek. She had prior to joining elective politics served as as the Managing Director of the Uganda Electricity Distribution Company Limited (UEDCL), a Ugandan parastatal…

Why Total Is Taking Over Exiting GAPCO

Fuel distributor Total is taking over Gulf Africa Petroleum Corporation's (GAPCO) assets in Kenya, Uganda and Tanzania for a yet to be disclosed amount. Reliance Industries Limited, which owned GAPCO through Reliance Exploration & Production DMCC, is exiting its African fuel retail business by selling its entire 76% stake to Total SA of France. Reliance Industries owned a 76% stake in GAPCO while Fortune Oil Corp, Mauritius owned the remaining 24%. According to reports, Total is acquiring stake of both firms. The proposed transaction is subject to regulatory approvals and other closing conditions. "Reliance Exploration & Production DMCC, an indirect wholly owned subsidiary of RIL and Total, have executed agreements on May 30, 2016 for the sale of the entire 76 per cent interest held by REPDMCC in the Mauritius-incorporated Gulf Africa Petroleum Corporation (GAPCO)," RIL said in a statement at the end of May. "Since the acquisition of 76…

Oil Infrastructure Projects To Spur Uganda Economic Growth

A variety of oil infrastructure investments alongside other infrastructure in the transport sector will help Uganda grow by 5.9 percent in the 2016/2017 (July-June) fiscal year, a World Bank report released Monday has revealed. Uganda will construct a crude oil export pipeline to enable export her oil through the Tanzania port of Tanga from Hoima, western Uganda and another pipeline to Kampala to transport refined products for the local market. Uganda boosting of 6.5 billion barrels of unprocessed crude will also undertake construction an airport in Hoima to easy transport of human resource, raw materials to the oil fields. A number of road projects are being planned in the great Albertine region districts of Hoima, Buliisa and Nwoya to ease transportation. Notable investments in the energy sector will play an equally similar role in ensuring that Uganda stays in touch with the predicted growth of 5%. These major public investments,…

Uganda National Oil Company Recruits CEO

The Uganda National Oil Company (NOC) board Wednesday announced that Dr Josephine Kasalamwa Wapakhabulo will their first ever chief executive officer. Dr Wapakhabulo has a PhD in Information Science, a Master’s in Information Technology and a Bachelor’s Degree in Electronic and Electrical Engineering from Loughborough University in the UK. Emmanuel Katongole, the chairman of Uganda National Oil Company, said Dr Wapakhabulo will lead the set-up of NOC and manage its transformation into a world class oil and gas company as the country prepares for commercial oil production. The NOC board put up a notice of recruitment for several positions, including the CEO, Chief Exploration Manager, Chief Development and Operations Manager, Legal and Corporate Affairs Manager, Human Resource, and Finance/Administration Manager in February. According to Daily Monitor, a local daily newspaper, the CEO position attracted 37 candidates. Dr Wapakhabulo, who also holds a Global Executive MBA from INSEAD Business School in…

Oil Loans: Government To Negotiate With Banks

Government has promised to talk to commercial banks in an attempt to bail out companies that borrowed money to facilitate their activities in the oil and gas industry but due to delays in the sector have not been able to repay the loans. “There are companies that borrowed money in order to, for instance, buy drilling rigs. Hence, on account of delays in the oil programmes, these companies’ loans have attracted huge interest and yet they are not yet working.” President Yoweri Kaguta Museveni said. He was speaking at the State of the Nation Adress held at Serena Hotel in Kampala. He added that these companies get support from the government to negotiate with the Banks for reasonable treatment. Uganda boasts of 6.5 billion barrels of proven oil reserves, that according to President Museveni will help fund construction of roads, the railway, electricity generation, irrigation, some aspects of education and…

Why Ugandans Might Miss Out On Oil Money

In 1970s, current Minister of Finance, Planning and Economic Development Matia Kasaija was a budding farmer rearing about 2000 goats he dearly loved. The farmer in him decided that he should get a market and cash in on the animals. However that market couldn’t be got in Uganda. A friend advised him that in Saudi Arabia, goats are on high demand. They worked around the clock to secure the market in the Arab world. Luckily they were successful. The buyers in Saudi Arabia however wanted about 20, 000 goats. Kasaija, who then was a civil servant, was overwhelmed by the demand, the goats on his farm were insufficient and would be depleted if sold all his animals. He was not about to sell all his goats. He had to find a way. Together with his friend, they traversed the northern and eastern part of the country to get goats they…

Final Investment Decision For Kenya Oil Set

A high ranking officer of oil exploration company Tullow Oil has said the Final Investment Decision (FID) for the early oil pilot scheme in Kenya’s oil rich South Lokichar basin is expected between June and July, Oil In Kenya, a Kenyan news website with an eye for oil and gas, quotes Anthony Mwangi Tullow Oil’s director of government, public affairs and communication. Mwangi was speaking at the recently held 2nd Turkana Oil and Gas Conference in Lodwar. The explorer then expects early oil at a rate of 2,000 barrels of oil a day through road transport to commence in July 2017 from where it shall be stored for up to 8 months as to when adequate export amounts of over 600,000 barrels shall be achieved. Already the company says it holds about 70,000 barrels at the Ngamia and Amosing fields that was extracted during the extensive well testing programme. The…

Oil Money: CNOOC Awards Hoima Top Performing Students

CNOOC Uganda, the Operator of Kingfisher oil field, recently recognized and awarded ninety (90) students in Hoima District who have achieved best performance at PLE, UCE and UACE level examinations, under its Corporate Social Responsibility Program code-named “CNOOC Best Performer’s Award”. The CNOOC Best Performer’s Award (BPA) was inaugurated in 2012, with an aim of encouraging better performance to the students in Hoima District. To date the Program has rewarded 240 students as follows (in 2013-60 were rewarded; in 2014 - 90 were rewarded; in 2015 – 90 were rewarded) and in 2016, an addition of 90 more students will be rewarded which will bring the cumulative total of BPA beneficiaries to 330 students at PLE, UCE and UACE levels. Awarding the students with prize money and certificates is a move to motivate them and this has indirectly contributes to the improved performance of students in Hoima District in regard…
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