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{UAH} WHAT WOULD MAGUFULI (RIP) DO TO THIS PETROLEUM AUTHORITY OF UGANDA?

Picture: How the Petroleum Authority of Uganda, a whole government agency, responded with typo's and poor english to the important issues I raised concerning Uganda's oil resources. Yet the Twitter bio of the individual says he is a "Communications Specialist, and the Corporate Affairs Officer for the Petroleum Authority of Uganda. Mind you I had also complained about the probable incompetence of the individuals handling the countries oil on behalf of the people of Uganda, and this gentleman decides to open his mouth and remove all doubt about that possible state of affairs in the government agency. What would Magufuli do if this government agency was in his country and responding arrogantly, unprofessionally, with smear, and in public, to the countries citizenry?

I have been publicly attacked on Twitter yesterday Saturday in a very stupid manner by the Petroleum Authority of Uganda for what I wrote a few days ago concerning the countries oil exploration project. An entire government agency, supposedly public servants dutifully serving the citizens of this country and answerable to them, individuals expected to be the professionals and knowledgeable experts who should be informing the people of Uganda including myself, about the national resource and what it will mean for the people and their economy, that state institution actually had nothing substantive to respond regarding the important public interest issues I raised, and instead only demonstrated fully the empty heads that I had said they possibly were.
Today, I would like to further table a quick comparative analysis on crude oil export versus a Ugandan refinery.
On average, one barrel of crude oil (159 litres) passing through a refinery will produce:
- 73 litres of petrol,
- 35 litres of diesel,
- 20 litres of jet fuel,
- 6 litres of propane,
- 34 litres of other products like butane, asphalt...etc, and
- 1 kg of sulphur.
If you check the retail price of all these products, you will find that just one barrel of refined oil produces upto $650 US Dollars of added value products.
Now compare that to selling just crude oil at todays international price of $60 dollars per barrel?
Remember I had noted that if we consider how from those $60 dollars, the oil companies will get 70% of that revenue (which is $42 dollars), and Tanzania charges $12.77 as transit tax per barrel of crude oil, the two totalling to 55$ from the $60 dollars, Uganda will therefore be left with peanuts of only $5 Dollars per barrel of its own oil.
How brain dead does one have to be not to be able to see the difference between getting just $5 dollars from every barrel of crude oil, or basking in an estimated $650 dollars from the same barrel of oil after refinery?
And while usually people around the world think of the big sales of petrol, diesel, jet fuel and propane, those four products fetch just $120 Dollars from each refined barrel of crude oil. The refineries don't tell anyone that each barrel of crude oil produces one kilogram of sulfure. And if you check the retail price of pure sulfure on the market, it actually sells for $500 US dollars per kilogram.
Meaning that we get more from selling the kilo of sulfure produced from the barrel of crude oil, than we get from selling petrol, diesel, jet fuel and propane combined (just $120 dollars). So even if we dumped these fuels and just took sulfure, the country would be earning an average $500 US dollars from each barrel of crude oil after refinery instead of just $60 dollars per barrel of crude oil.
By any standards the business case for a refinery is about ten times smarter for Uganda (and the region), and the country is therefore squandering billions of dollars in the least productive, and least value added option regarding Uganda's oil exploration prospects.
Let me hereby remind the people of Uganda, and it is fairly noticeable to any keen observers, that the only individuals excited about the country's oil prospects these days are those who are getting contracts in the oil projects. This is because it is only them who stand to gain from the country's oil while the rest of the nation is not seeing anything for them from this resource, be it improved government services, better education and health facilities or government investmenting in new world class infrastructure projects around the country.
As I said last time, it is now cleàr that the cost of extracting the crude oil from the ground and getting it to the volatile international market exceeds the revenue that will be made from the oil. Yet this is something they should have inquired, calculated and known from the start, and then taken the appropriate decisions.
It is for this reason that I hereby declare that there is a major blue collar fraud going on in broad daylight against the people of Uganda on this oil, a scam where only a few individuals and their companies have their napkins on around their necks ready for "eating" to their fill from oil contracts and subcontracts. Therefore mark my words when i say that the people of Uganda around the country will leave empty-handed from this oil adventure. And as the saying goes, "this is going to end in tears" for the people of this country!

Signed: Mr. Hussein Lumumba Amin.
Kampala, Uganda.

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