The 28th COP28 in Dubai between November and December 2023 brought forth critical discussions on the future of the oil and gas industry. I am pleased to share two significant outcomes, COP28 proposed a gradual transition from these resources. However, this transition period extends well beyond Uganda’s planned oil and gas boom,which is expected to commence with ‘first oil’ in 2025. Our reserves, therefore, remain an invaluable and transformative national asset.
Last in, last out, Having benefited for decades, established oil-producing nations are better positioned to reduce their output first. As late entrants, we and other developing nations can develop our resources and attain the same benefits enjoyed by long established producers.
From strategic planning to practical implementation, we are advancing four major oil and gas projects: the Tilenga and Kingfisher projects in the Upstream (US $6-8 Billion) the East African Crude Oil Pipeline (EACOP) (US $5 Billion), and the Uganda Refinery (US $4 Billion).
These projects, combined with the Government’s investment in supportive infrastructure, signify an investment of approximately US$ 20 Billion in Uganda’s economy. The progress made in developing these projects is as follows:
On the Refinery Project, MEMD subsequently engaged stakeholders to develop a strategy for the refinery project. Expressions of Interest (EOIs) were received from several potential investors and evaluated.
Following which, a Memorandum of Understanding (MoU) was signed on 22nd December 2023 between the Government of Uganda @GovUganda and Alpha MBM Investments LLC from the United Arab Emirates, outlining co-operation and negotiation terms for the Refinery Project.
Negotiations of the key commercial agreements between the Government and Alpha MBM Investments LLC commenced on 16th January 2024 and are expected to be concluded within three months.
Efforts to increase security and efficiency of supply of petroleum products are in advanced stages after the amendment of the Petroleum SS Act of 2008. This empowers UNOC in partnership with VITOL Energy Limited to import petroleum products directly from the refineries overseas.
Uganda National Oil Company Limited (UNOC) was to commence the importation in Jan 2024 but due to a court suit challenging our application for a license to transport fuel products in Kenya,this was not achieved. Government escalated the dispute to the East Africa Court of Justice (EACJ) where we expect a ruling.
I assure you that the Government of Uganda remains committed to the sustainable development of the nation’s oil and gas resources, thereby playing a pivotal role in our journey towards poverty eradication.
I wish to thank H.E President Kaguta Museveni for his continued guidance and support for the oil and gas industry.
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