{"id":13341,"date":"2024-12-03T09:43:22","date_gmt":"2024-12-03T09:43:22","guid":{"rendered":"https:\/\/ugandaupdatenews.com\/?p=13341"},"modified":"2024-12-03T09:49:07","modified_gmt":"2024-12-03T09:49:07","slug":"ugandas-journey-to-oil-production-progressing-as-per-set-timelines-ugandans-to-benefit-in-local-content-participation","status":"publish","type":"post","link":"https:\/\/prowebinhost.com\/anzu\/ugandas-journey-to-oil-production-progressing-as-per-set-timelines-ugandans-to-benefit-in-local-content-participation\/","title":{"rendered":"Uganda\u2019s Journey to Oil Production Progressing As Per Set Timelines , Ugandans To Benefit in Local Content Participation \u00a0"},"content":{"rendered":"\n

By Zulfah Namatovu<\/strong><\/p>\n\n\n\n

Uganda\u2019s journey towards becoming an oil-producing nation is progressing according to set timelines .<\/p>\n\n\n\n

With an estimated 6.5 billion barrels of oil reserves, the country is poised to unlock significant economic potential, with more than 70% of Ugandans hopeful that oil production will improve the nation’s economy, which is struggling  with poverty and high unemployment rates especially among the youth.<\/p>\n\n\n\n

At the 9th Uganda International Oil and Gas Summit, Eng Irene Batebe, the Permanent Secretary of the Ministry of Energy and Mineral Development, reaffirmed the government’s commitment to a robust legal and regulatory framework. This framework is designed to address concerns around environmental sustainability, public health, and ensuring that local communities benefit from the sector.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

\u201cWe have put in place a legal framework that covers all critical aspects, including environmental sustainability, health, and ensuring that the local population benefits from the sector,\u201d Batebe explained.<\/p>\n\n\n\n

 She said that the oil and gas sector is well positioned to create  wealth for the long-term prosperity for all citizens, avoiding the pitfalls of the so-called “oil curse” that has affected other African nations.<\/p>\n\n\n\n

Despite the promising outlook, production has been delayed due to infrastructure challenges and regulatory processes.<\/p>\n\n\n\n

Moses Kaggwa, Director of Economic Affairs at the Ministry of Finance and Economic Development, acknowledged these delays but emphasized Uganda\u2019s dedication to responsible oil development, drawing lessons from nations like Ghana, where hasty oil exploitation led to economic instabilityt<\/p>\n\n\n\n

 \u201cThe dream of oil and gas in Uganda is becoming a reality. We have worked hard to create a favorable fiscal environment and build the necessary infrastructure,\u201d Kaggwa noted, stressing the importance of getting things right to avoid repeating past mistakes”.<\/p>\n\n\n\n

Kaggwa said the government plans to use oil revenues to diversify the economy, with projections indicating that Uganda could generate up to $2 billion annually from taxes, royalties, license fees, profit oil, and its guaranteed share in upstream oil projects. This revenue is expected to fund key infrastructure projects, social programs, and contribute to economic diversification efforts.<\/p>\n\n\n\n

 Locally, Uganda aims to reduce its import bill for petroleum products, currently over $1 billion annually, by refining 60,000 barrels of oil per day. This will not only cut fuel import costs but also enable the export of refined products, boosting the country’s revenues.<\/p>\n\n\n\n

However, environmental concerns persist. Critics worry about the risks of oil exploration in Uganda\u2019s fragile ecosystems, particularly in the Albertine Graben region, known for its rich biodiversity.<\/p>\n\n\n\n

 International financial institutions like Standard Chartered Bank and the European Investment Bank (EIB) have agreed to support Uganda\u2019s oil sector, contingent on the government implementing stringent environmental and social governance (ESG) measures. A key focus for Uganda is local content development to allow as many Ugandans to  befefit from the sector .<\/p>\n\n\n\n

 Lynda Biribonwa, Board Chairperson of the Uganda National Petroleum Authority (UNPA), hsaid  that $17 billion in contracts have been awarded to local companies in sectors like logistics, infrastructure, and supply chain management.<\/p>\n\n\n\n

These efforts will create job opportunities and enhance local expertise. The economic benefits of oil production in Uganda are clear-with careful management, the country’s oil wealth has the potential to transform the economy now standing at USDs 45Bn, providing long-term benefits for both the nation and its people.<\/p>\n\n\n\n

Presdient Yoweri Museveni has set am ambitious target of growing the economy to USDs 500bn in the next 10 years .<\/p>\n\n\n\n

Editor: msserwanga@gmail.com<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By Zulfah Namatovu Uganda\u2019s journey towards becoming an oil-producing nation is progressing according to set timelines . With an estimated<\/p>\n","protected":false},"author":1,"featured_media":13342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[65,214],"tags":[],"class_list":["post-13341","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national-news","category-oil-production"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2024\/12\/lit-scaled.jpg","jetpack-related-posts":[{"id":5038,"url":"https:\/\/prowebinhost.com\/anzu\/ugandas-joint-venture-partners-led-by-total-energies-announce-final-investment-decision-for-oil-production-by-2025\/","url_meta":{"origin":13341,"position":0},"title":"UGANDA\u2019S JOINT VENTURE PARTNERS LED BY TOTAL ENERGIES ANNOUNCE FINAL INVESTMENT DECISION FOR OIL PRODUCTION BY 2025","author":"UgandaUpdate","date":"February 1, 2022","format":false,"excerpt":"US dollars 10bn to be invested60,000 direct and indirect jobs to be created 57% of which will go to UgandansUganda\u2019s automotive industry to benefit through car parts manufacturing By Our Senior Reports Uganda's joint venture partners led by Total Energies have announced the Final Investment Decision (FID)-registering a major international\u2026","rel":"","context":"In "EAC Regional News"","block_context":{"text":"EAC Regional News","link":"https:\/\/prowebinhost.com\/anzu\/category\/eac-regional-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/02\/la.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/02\/la.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/02\/la.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/02\/la.jpg 2x"},"classes":[]},{"id":8080,"url":"https:\/\/prowebinhost.com\/anzu\/ugandas-oil-journey-drilling-to-commence-in-the-first-quarter-of-2023\/","url_meta":{"origin":13341,"position":1},"title":"Uganda\u2019s Oil Journey: Drilling to Commence in the First Quarter of 2023","author":"UgandaUpdate","date":"January 23, 2023","format":false,"excerpt":"By Gloria Kembabazi In Kampala The Minister of Energy and Mineral Development Hon. Ruth Nankabirwa, has announced that the commencement of development drilling of Uganda\u2019s oil is expected to commence in the first quarter of 2023. This speaks to the target of having Uganda\u2019s first oil by 2025. The development\u2026","rel":"","context":"In "Energy"","block_context":{"text":"Energy","link":"https:\/\/prowebinhost.com\/anzu\/category\/energy\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/PHOTO-2023-01-20-10-43-56-1.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/PHOTO-2023-01-20-10-43-56-1.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/PHOTO-2023-01-20-10-43-56-1.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/PHOTO-2023-01-20-10-43-56-1.jpg 2x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2023\/01\/PHOTO-2023-01-20-10-43-56-1.jpg 3x"},"classes":[]},{"id":3512,"url":"https:\/\/prowebinhost.com\/anzu\/ministry-of-energy-and-mineral-development-prioritizes-participation-of-ugandans-in-the-development-of-the-oil-and-gas-sector\/","url_meta":{"origin":13341,"position":2},"title":"MINISTRY OF ENERGY AND MINERAL DEVELOPMENT PRIORITIZES PARTICIPATION OF UGANDANS IN THE DEVELOPMENT OF THE OIL AND GAS SECTOR","author":"UgandaUpdate","date":"June 24, 2021","format":false,"excerpt":"PS \u00a0Robert Kasande says oil companies will give priority to goods and services provided by Ugandan citizens and registered entities owned by UgandansNational participation of Ugandans will be maximized through three main ways -provision of goods and services by Ugandans, employment and training of Ugandans and technology transfer to Ugandans\u2026","rel":"","context":"In "National Development"","block_context":{"text":"National Development","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-development\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/06\/robert-kasande.jpg","width":350,"height":200},"classes":[]},{"id":3532,"url":"https:\/\/prowebinhost.com\/anzu\/new-energy-minister-nankabirwa-to-push-for-lower-electricity-tarrifs-to-boost-industrialisation-and-have-many-ugandans-access-power\/","url_meta":{"origin":13341,"position":3},"title":"NEW ENERGY MINISTER NANKABIRWA TO PUSH FOR LOWER ELECTRICITY TARIFFS TO BOOST INDUSTRIALISATION AND HAVE MANY UGANDANS ACCESS POWER","author":"UgandaUpdate","date":"June 27, 2021","format":false,"excerpt":"Uganda\u2019s new Minister for Energy and Mineral Development (MEMD)\u00a0 Hon. 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