Uganda accelerates oil infrastructure development amidst global energy shift

Business
Uganda accelerates oil infrastructure development amidst global energy shift
Energy minister Nankabirwa

The Ugandan government is actively engaged in advanced negotiations with UAE-based partner ALPHA MB LLC to construct a $5 billion oil refinery.

Minister of Energy and Mineral Development, Ruth Nakbirwa Sentamu, disclosed during a press conference at the Ministry headquarters that these negotiations aim to conclude within three months from January, aligning with the deadline set for the first oil production in 2025.

Drilling activities have been underway since January 2023 at the NOOC operated Kingfisher Development area in Kikube district and continue in Bullisa and Nwoya districts at the Total Energies operated Tilenga oil field, where drilling commenced in June of the previous year.

The East African Crude Oil Pipeline (EACOP), stretching 1,443 kilometers, is progressing with early civil works in Tanzania.

Nyanza Roads LTD and JV Spec are facilitating the handover of the main campus and piping yards to China Petroleum Pipeline Engineering Company for pipeline construction. The government assures that the oil refinery project is on track.

According to Ruth Nakbirwa Sentamu, the Final Investment Decision on the refinery is expected after the three-month negotiation period.

Irene Batebe, Permanent Secretary at the Ministry of Energy, shared that investments totaling $7.14 billion have been approved, with 36% committed to Ugandan companies during the development phase, targeting a 40% contribution.

Furthermore, over $11.9 million has been injected into the community economy, and 5,000 Micro, Small, and Medium Enterprises (MSMEs) have been trained in essential oil and gas business requirements, including 137 women and youth through empowerment projects.

Dispelling concerns that Uganda might be late to capitalize on the oil boom amid the global energy transition debate, COP 28 recognized the need for a gradual shift.

Uganda adopts a 'first in, first out' approach to fossil fuel usage, emphasizing a pragmatic stance in alignment with evolving global energy dynamics.

As the nation gears up for a transformative phase in its energy landscape, these developments underscore Uganda's commitment to strategic partnerships and inclusive growth, ensuring that the benefits of its oil and gas resources reach the broader population.

Reader's Comments

RELATED ARTICLES

LATEST STORIES

Fisherman drowns in Lake Kyoga
news By Kenneth Kazibwe
2 hours ago
Fisherman drowns in Lake Kyoga
Uganda Strengthens Cyber Security Ties with Estonia
cyber-security By David ijjo
4 hours ago
Uganda Strengthens Cyber Security Ties with Estonia
FDC in Turmoil: Funeral Erupts in Violence
news By Adam Mayambala
4 hours ago
FDC in Turmoil: Funeral Erupts in Violence