Government to transport crude oil at Shs46,000 per barrel
Production. An oil field in Bunyoro Sub-region. file photo
What you need to know:
- He told investors that there are a lot of potential in Uganda in other sectors such as agriculture, medicines, fibre, minerals and other materials, which the investors can venture into.
- The Minister of Energy, Ms Irene Muloni, said the summit attracted 125 companies, 45 international experts in oil from 35 countries.
Ms Muloni said government has built infrastructure in the oil rich area in the recent past, which has reduced risks in the oil and gas sector.
President Museveni has said Uganda will be able to transport its crude oil through the pipeline to Tanzania at $12.77 per barrel (about Shs46,800) following the concessional agreement with Tanzania.
Addressing the 5th Uganda International Oil and Gas Summit on Wednesday, the President said 6.5 billion barrels of oil have been confirmed available in Uganda awaiting production. However, he said there is need to take caution because oil can lead to a curse.
Oil was discovered in Uganda in 2006 and since then, the country has not been able to drill (produce) oil for commercial production due to technicalities involved in the oil and gas industry.
The production date has been shifted more than three times.
On the current status of government’s negotiating with the oil companies to reach the Final Investment Decision (FID), Mr Museveni said: “We have already negotiated good agreement with the oil companies and already squeezed them.”
“We are in touch with the oil companies and we will resolve the issues, the oil companies need to come back to the negotiation table,” the President added. Mr Museveni said although there is solar power, which can run vehicles, petroleum will remain important. However, he said human resource was still crucial.
Human resource
“The biggest resources you could have out of here is the human resource, human beings are very big resource,” he said, noting that they help in transportation and consumption of products.
Relating oil revenue to Uganda’s debt, Mr Museveni said: “This oil is simply the starter, we will use it to pay off the debt, these debts has to go back.” Uganda’s external debt now stands at 42 per cent of the GDP.
He told investors that there are a lot of potential in Uganda in other sectors such as agriculture, medicines, fibre, minerals and other materials, which the investors can venture into.
The Minister of Energy, Ms Irene Muloni, said the summit attracted 125 companies, 45 international experts in oil from 35 countries.
Ms Muloni said government has built infrastructure in the oil rich area in the recent past, which has reduced risks in the oil and gas sector.
