President Museveni has held a meeting with Jabier Rielo Total’s Exploration and Production Africa Division Vice President East Africa over the development of a crude oil pipeline ahead of production in 2018.
Uganda is planning to build an oil refinery and a pipeline in the next three years to use in crude oil production available in 2018.
According to reports, and http://deltaalphapihonorsociety.org/wp-content/plugins/gp-premium/blog/functions/generate-blog.php the Ministry of Energy is also due to sign oil production licenses with France’s Total and Britain’s Tullow Oil by the end of the year as it seeks to start commercial production by 2018.
The meeting was also attended by the Minister for Energy and Mineral development Eng. Irene Muloni and the Permanent Secretary Ministry of Energy Mr. Kabagambe Kalisa.
Museveni had earlier taken a harsh stance against exportation of a portion of crude oil, saying government would have to first ensure the construction of a refinery.
But oil companies insisted that a pipeline to coast was essential for them to recoup their investment costs faster.
Some oil companies had started laying off idle staff as they waited for licenses from government.
The legal framework for the management of Oil and Gas Resources was recently finalised with the enactment of the Petroleum (refining, gas conversion, transmission and midstream storage) Act 2013, the Petroleum (Exploration, Development and Production) Act 2013 and the Public Finance Management Act 2015.
ChimpReports is yet to get a briefing on what transpired in the meeting at State House.
However, investors have since expressed frustration over government’s failure to start commercial production of oil.
Uganda Chamber of Mines and Petroleum, (UCMP) chairman, Elly Karuhanga this year said whereas news on the awarding of a refinery contract to RT Global Resources was very exciting, “Government should apply similar decisiveness on the other lacunas in the oil and gas and mining industries, especially the issue concerning the issuance of Production Licenses to the Total E&P and Tullow Plc and the scrapping of taxation on exploration projects.”
Finance Minister Matia Kasaija said in his budget speech that relevant institutions, including the establishment of the National Oil Company and the Petroleum Authority of Uganda, are also being finalized to ensure prudent management of the Oil and Gas resources.
Uganda has an estimated 6.5 billion barrels of petroleum resources from exploration work in less than 40 percent in the Albertine Graben.
However, less than 10 percent of the Albertine Graben is currently licensed and the six blocks targeted for this maiden licensing round have good data coverage.
Bank of Uganda Governor Tumusiime Mutebile recently warned against the delays in the oil industry, saying the uncertainties surrounding the future oil prices was a point of concern to the Central Bank – the monetary policy regulator, – Ministry of Finance, and every Ugandan that has high hopes for the big Oil revenues.
“One of our [BoU] forecasters, whom we depend on, had in March 2013 estimated that oil prices would be at $148 a barrel in 2019. But the same forecaster has currently revised his forecast down to $81 for the year 2019,” said the Governor.
Mutebile warned that once this uncertainty continues, foreign companies in the sector were likely to hold back their investments and that that would have serious effects on the country’s anticipated oil production.
“Now we don’t know where the oil process will be in the next 10 years, and this is not good. It involves risks that cannot be quantified.”
But Kasaija said as part of the Refinery development programme, land acquisition for the proposed Oil Refinery at Kabaale in Hoima is almost complete and that the environmental baseline study for the Oil Refinery project has also been concluded.
“The major priority next financial year will be commencement of detailed engineering studies for the Oil Refinery, following the selection of a Lead Investor on a Private-Public Partnership (PPP) basis,” observed Kasaija.
“Government will also continue the exploration and production of oil and other valuable minerals such as Iron Ore and Phosphates, and also concretize the development of the Crude Oil Pipeline to the Indian Ocean and petroleum products pipelines,” he added.
The UN Secretary General, cure http://crewftlbr.org/wp-content/plugins/contact-form-7/includes/upgrade.php Ban Ki-moon has cited that turning sustainable development begins with bridging infrastructure financing gaps particularly in Africa.
This he mentioned in a recently concluded panel discussion that sought to explore new approaches to help countries harness national resources more effectively.
The event, “Billions to Trillions- Ideas into Action” that had the President of the African Development Bank Group, Donald Kaberuka partake in, happened on the sidelines of the Financing for Development conference in Addis Ababa. It followed a recent announcement by Multilateral Development Banks (MDBs) and the International Monetary Fund (IMF) to extend more than $400 billion in financing over the next three years.
The panel, which also included World Bank Group’s president, Jim Yong Kim, IMF’s Deputy Managing Director, Min Zhu, and the UN Secretary General, Ban Ki-moon, discussed how to build on MDB’s business model to leverage additional finance as well as give voice to the private sector and strengthen public-private collaboration.
He also reiterated the call in the Addis Ababa Action Agenda which requires financial institutions to promote regional integration.
Moon expressed the need for increased investments in addressing hunger and malnutrition including promoting sustainable agriculture.
“The Millennium Development Goals have significantly addressed poverty reduction and social development. Now we must tackle the unfinished business of the MDGs, consolidate achievements and put our world on a more sustainable and equitable trajectory,” he stated.
Moon also underscored the importance of the joint efforts by World Bank Group, regional development banks and the UN. He described them as “critical” to transforming commitments in the Addis Ababa Action Agenda – the expected outcome of the Financing for Development conference – into a vigorous global partnership for sustainable development.
“Now is the time to translate the best ideas and expertise of all our institutions into action. To go from billions in official assistance to trillions in investments, we’ll have to push even our willingness further to collaborate through creative partnerships,” said Jim Yong Kim.
The financial institution leaders also vowed to work more closely with private and public sectors to help mobilize needed resources in order to achieve SDGs, which countries are expected to adopt in September 2015.