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Uganda is now moving from the exploration phase to the development phase of its oil fields. With about three projects to come, the country intends to develop those of its oil fields where it has some discoveries.
It also plans to have a 60,000 barrel refinery and 200,000 barrels of crude oil export pipeline from Uganda to Tanzania.
Uganda has about 21 oil and gas discoveries, 6 billion barrels of oil in place, 1.4 billion barrels of recoverable resources, 500 billion cubic feet of gas, 9 production licenses, more than 14 discoveries at CNOOC, Total and Tullow, 3 exploration licenses at Armor Energy and Oranto Petroleum and 90% of Albertine Graben are unlicensed.
“We are now moving from the exploration phase to the development phase and we have about three projects coming up as we plan to develop the oil fields where we have discoveries.
“We plan to have a 60,000 barrel refinery. We are also planning to have an export pipeline of 200,000 barrels of crude oil from Uganda to Tanzania. And we also have new licenses being explored, ”said Mr. James Musherure Rujoki, senior national content officer responsible for contracts at the Petroleum Authority of Uganda.
National content or local content has been the focus of attention of the Petroleum Authority of Uganda. In 2018, the country developed a national content policy known as the “National Oil and Gas Policy” with two main goals.
In the country’s national content policy, there are about two laws which include the Petroleum Law (Exploration, Development and Production) and the Petroleum Law (Refining, Conversion, Transmission and Intermediate Storage). Under these laws, there are requirements for national content. The country also has a specific national content requirement for production sharing agreements, among others.
Uganda’s national content is about added value. It is also about contributions to the Ugandan economy, its citizens and its businesses. It is anchored on five key pillars, which include technology transfer; Employment of Ugandan citizens; Capacity Building; Use of locally produced goods and services; and business development.
“As a result of the creation of our national content, we have seen significant growth in value retention in the country of approximately $ 943 million out of $ 3.5 billion between 2012 and 2019.
“We have about $ 3.5 billion invested in Uganda’s oil and gas sector and we have kept about $ 943 million, or 28% of the investment going to local Ugandan businesses.
“We have seen tremendous growth in local Ugandan content. Local content has been a top priority for the Ugandan government. But this is a gradual process and we are committed to doing a lot for the development of local content in Uganda.
“We make sure we continue to develop the competitiveness of Ugandan businesses. As a government, we have done so much on this aspect, ”said Rujoki.
He further said, “We have developed a study to identify the strengths of Ugandan companies and it is from this study that we have established a national supplier database covering approximately 1,771 entities (72% Ugandan ). The database provides detailed information on local Ugandan businesses such as their products and services, certifications, among others. The national supplier database is an essential tool because we have seen positive results from it.
“We have created an industrial recovery center. These centers are meant to develop local businesses in areas they lack.
“We have had various trainings for companies such as HSE management, international offer management practices.
“We also realized that there were funding issues. On that note, we have put in place a specific policy to financially support local businesses and the Ugandan government will provide funds to these businesses.
“We’ve also seen joint ventures come together. We have seen international and local companies working together to promote technology transfer. This is also part of our national content requirements.