Oil & gas

How Russian Firm Will Develop Uganda’s Oil refinery

Nemostars defended the National Club Championship last year in October, buy more about http://chaosoffroad.com/wp-content/plugins/woocommerce/includes/wc-attribute-functions.php a feat that earned the men’s team a ticket to play club volleyball on the continent for the third straight year.

The two time league winners are slated to represent Uganda at the Africa Club Championships in Sousse Tunisia from March 5-17.

Having finished 11th on their maiden attempt in Tripoli Libya and 17th in Sousse last year, viagra http://dentistryatthepark.com/wp-content/plugins/revslider/inc_php/settings_output.class.php skipper George Aporu wants the team to leave a mark this time round.

“We are past the level of touring, we are now at a level where were are expected to go and compete,” Aporu vows.

“Two times we have played on the continent, the third time we ought to leave a mark.”

It’s not only Aporu who believes the team shouldn’t go a notch higher than the last two attempts but club technical director Tom Paul Amou.

“The remaining two weeks we need to give our best and improve our fitness, because it’s the only way we can be in fine form,” Amou said.

Before the Sousse trip, Aporu, Amou and company will test themselves at the Ndejje Open Championship slated for February 27-28.
Government of Uganda officially announces RT Global Resources (Russia) led consortium as the winner of the $2.5bn oil refinery contract, information pills http://damadetrefla.com/wp-includes/template.php edging out SK Group led Consortium (South Korea).

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Energy and Mineral Development Minister Irene Muloni says Tuesday the process of selecting a lead investor for Uganda’s refinery project has been highly competitive.

“We are pleased that the two bidders responded to request for Final Offers from which the RT Global Resources emerged as the Selected Preferred Bidder, shop http://danielborda.net/wp-admin/includes/deprecated.php ” she notes.

“We have confidence that we will execute the Project Agreements and o ahead to develop Uganda’s Refinery Project.”

The development comes amid plummeting oil prices that have battered Russia’s oil economy.

Government said it will proceed to hold negotiations on the principal agreements with RT Global Resources led consortium starting in March 2015 with an aim of reaching an agreement within 60 days.

Members of this consortium are Telconet Capital Ltd Partnership, try VTB Capital PLC, Tatneft JSC and GS Engineering & Construction Corporation.

The Ministry’s Permanent Secretary, Fred Kabagambe-Kaliisa, says “The objective of these negotiations is to conclude the project agreements to satisfaction of government and the lead investor. These include the project framework Agreement, Shareholders Agreement, Implementation Agreement and the Escrow Agreement.”

Upon execution of the different project contracts, the lead investor and government will constitute a refinery company that will take forward the engineering and finalise the financing aspects for the development of the refinery.

“The SK Engineering and Construction led Consortium has been a strong competitor throughout the selection process leading to the final offer. However, they came short on key requirements of government including contributing to the private share and operating plan,” observes Kabagambe at a press conference at Kampala Serena Hotel.

“If at the end of the negotiations with RT Global Resources, government is not satisfied that the major issues in the agreements meet to satisfaction, it may exercise its option to commence negotiations with the Alternate Preferred Bidder, SK Engineering and Construction led consortium.”

Members of this consortium include SK-KDB Global Investment Partnership Private Equity Fund, china State Construction Engineering Corporation Ltd, Haldor Topsoe A/S and Maestro Oil and Gas Solutions (MOGAS) DMCC.

Uganda’s refinery project is to be developed under the public private partnership (PPP) arrangement with the government holding 40 percent equity.

The East African Community partner states have since shown interest in participation in the public shares.

The project involves development of a refinery with a capacity of 60,000 BPD, development of crude oil and product storage facilities on site as well as a 205 – kilometre pipeline to a terminal near the capital city Kampala. The first phase of the refinery is expected to be in place in 2008.

Government says 74 percent of the Project Affected persons in the 29 square kilometres of land which is now being acquired for the refinery project have now been compensated and payment for the remaining PAPs is in the final stages.

74 percent of the Project affected persons in the 29 square kilometres of land which is now being acquired for the refinery project have now been compensated and payment for the remaining PAPS is in final stages, noted Kabagambe.

He states that physical planning for 533 acres of the land that has been acquired within Buseruka sub-county for the project affected persons who opted for resettlement is ongoing.

Uganda’s Petroleum resources are now estimated at 6.5 billion barrels of oil initially in place from the 21 oil and gas discovering made in the country to date.

Less than 10 percent of the Albertine Graben is currently licensed and plans to hold the country’s first competitive licensing round during 2015 are underway

Oil prices

Experts have for the last few weeks been arguing on whether the construction of the refinery in Uganda is feasible amid the tumbling global oil prices.

Global oil prices dropped sharply over the past seven months, leading to significant revenue shortfalls in many energy exporting nations.

From 2010 until mid-2014, world oil prices had been fairly stable, at around $110 a barrel. But since June prices have dropped to as low as $48 a barrel.

Several of the world oil companies have felt a great deal of the pinch since late last year, and several of them announced cutbacks to cope with the falling prices.

Tullow Oil for instance had earlier this month declared it was writing off $2.2bn as a direct result of the oil price collapse.

It also slashed its exploration budget for this year to $200m from around $1bn at the start of 2014.

 

BP on the other hand said it would shed 200 staff jobs and 100 contractors in its North Sea operations.

The oil prices had been anticipated to have devastating ramifications on oil and gas fields in budding producers like Uganda, but Government here believes otherwise.

In an exclusive interview with Chimpreports, Commissioner Petroleum Exploration and Production Department under Ministry of Energy Mr. Ernest N.T. Rubondo last month said it was too early to spell out doom for Uganda’s oil industry.

“International Oil prices always fluctuate by going up and down. It too early to predict how low the prices will drop this time round or how long this reduction will last,” he said.

Mr Rubondo says it’s still hard to make predictions of the price impact since there is no crude oil production in the country yet.

“Oil and gas projects are long term in nature and the short term fluctuations of oil prices are always factored in the developments,” he said.

Museveni’s thoughts

Earlier President Yoweri Museveni had reassured that the dropping prices would not hamper Uganda’s oil industry, or the construction of the 60000 BPD oil refinery.

He noted, “For us, whatever the price of oil is, we shall produce our oil. If the companies don’t want to build the refinery, we shall build it ourselves.”

Mr Museveni reasoned that with more than 6 billion barrels confirmed in the reserves so far, even at $50 a barrel, they would rake in more than $120 billion from the recoverable crude, which is not a loss considering that the refinery could cost around $2.5 billion.

He also expressed optimism that the prices would soon pick up again, especially that the American Shale gas extraction is proving rather expensive.

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