{UAH} Energy Ministry official says People welfare is key priority as Uganda Prepares for Oil Production

Energy Ministry official says People welfare is key priority as Uganda Prepares for Oil Production

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By Amos Desmond Wambi on February 8, 2017 News

The issuance of production licences to lead players and the ongoing pre-production activities are an indicator that Uganda's oil sector is moving progressively according to the Ministry of Energy and Mineral Development.

Energy Ministry Spokesperson Ibrahim Kasita, said number of decisions and activities undertaken since last year "confirms the country's petroleum upstream sector is moving from exploration and appraisal to development and production stages,"

In August 2016, Five oil production licences were granted to Tullow Uganda Operations Pty Limited (Tullow) which operates Exploration Area 2 in the Albertine Graben. The area which measures about 1,527 square kilometers has about 26 wells and is co-owned by partners Total E&P and CNOOC, in which Tullow owned a 33% stake.

Three licences were also awarded to Total E&P Uganda BV for the operator of Exploration Area 1 which covers 3,066 square kilometers in which Total owned a 33% in collaboration with partners. Both companies joined partner CNOOC which had received its licence earlier.

A farmout between Tullow and Total in early January 2017 increased Total's state in the Albertine development projects.

French oil giant Total now owns more than half of Uganda's Lake Albert oil project, following a USD 900 million deal in which it acquired two thirds of Tullow Oil's share in the project, bringing its stake to 54.9%.

Kasita in a statement said: "As a matter of fact, a number of technical investigations (conceptual, appraisal, pre-project, basic engineering (FEED) studies) are underway to inform the final investment decisions by end of this year".

In April last year, Uganda chose to route its crude South wards to Tanzania's Northeastern port of Tanga. Both nations are in final inter-governmental negotiation stages to commence works on the project which is estimated to take three years.

Energy Minister Irene Muloni told a delegation of investors at a summit in Kampala in November last year that "Our understanding is that we want oil to flow in 2020 in this country,"

Kasita said the ministry is currently working with technocrats and stakeholders to ensure that the multi-billion-dollar oil projects achieve "social acceptance" given the fact that "a number of infrastructure such as well pads, Central Processing Facilities (CPF), pipelines, roads, camps and waste disposal pits will be established in people's land."

"Based on the knowledge gained from experiential learning, it is safe to state that people are put ahead of the petroleum upstream project during the development phase," he said.

"For instance, during drafting of the Land Acquisition and Resettlement Framework (LARF) all stakeholders (Including; communities, authorities (local and central government), Kingdoms and cultural institutions, civil society groups and businesses) were informed, involved, consulted and their feedback incorporated in the final and endorsed documents available on www.petroleum.go.ug website".

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