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Youth urge government to train them for the oil sector instead of sidelining them

Communique by GPFOG calling on government to improve national content

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President Yoweri Museveni. Photo from Galaxy FM 100.2

Museveni urges private sector to train technicians for oil and gas sector

  The President hints on the possibility of hiring technicians from neighbouring countries, in case Ugandans are not ready.  Government will not hesitate to hire or import oil and gas technicians from neighbouring oil producing countries, in case Ugandans are not ready, President

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A nugget of gold obtained in Mubende using mercury. Photo by Josephine Nnabaale

Uganda works to phase out mercury usage

The maiden Conference of Parties to the Minamata Convention on Mercury took place in Geneva on September 24-29. The Convention is an international legal instrument or Treaty designed to protect human health and the environment from anthropogenic emissions and releases of mercury and mercury

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East-Africa-Crude-Oil-Pipeline-launch

East African Crude Oil Pipeline: The Inside Story

East African Crude Oil Pipeline: The Inside Story Details emerge of how the crude oil pipeline will be financed, managed  New details have emerged in the East African Crude Oil Pipeline (EACOP) regarding how it will be financed, run and managed. For starters, Uganda plans to construct a

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Jimmy Mugerwa

Tullow hopes to conclude a farm-down to Total and CNOOC next year

Total and CNOOC will each have 44.11 percent stake in Uganda’s Oil reserves Edward Ssekika Tullow Oil Uganda Limited, a subsidiary of expects to conclude a farm-down with Total E&P Uganda BV and CNOOC by June next year. According to a Trading Update, the company has already submitted

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Did you Know?

Cost oil, Profit oil

If a company finds oil in an area that it is exploring, it is usually entitled to recover the costs of its investment from sale of the oil it discovers.  Eg, if the company spends $100 million on exploration and production, and finds oil worth $500 million, it is entitled to recover its $100 million from total sales of the oil; this is called “cost oil.”  The remaining $400 million is called “profit oil” and is divided between the company and the government in accordance with the Production Sharing Agreement (PSA) they reached.  The PSA may outline a timetable for the company’s recovery of “cost oil”– for example, stipulating that during the early years of production the company cannot take all of the oil as “cost oil” but that a certain percentage of it must be counted as “profit oil,” to ensure that the government does not have to wait for years before seeing any share of the profits.  (See also Production Sharing Agreement.)

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