Updated, November 15, 2012, with exclusive interview added.
Speakers at an East Africa Oil and Gas Summit in Nairobi yesterday urged the region’s governments to cooperate and harmonise their plans for processing and transport infrastructure.
“We are not competing with Uganda,” the Managing Director of Kenya’s National Oil Corporation, Summaya Hassan Athmani, told delegates. “The challenge is to expand our thinking beyond national boundaries and to think about this as a regional issue.” Read More
Uganda’s roads are utterly inadequate to support the volume and weight of heavy equipment that will be needed for oil production, according to a senior manager in a major international logistics company that ships oil and gas rigs around the world. Read More
Electric power is coming for the first ever time to parts of outlying Hoima District, whose underground wealth is matched by surface poverty. But the electricity generated by a small hydropower plant, which comes online in November, is only a fraction of what the proposed oil refinery will need.
HOIMA DISTRICT: The sun disappears below the hills of oil-bearing Hoima District and darkness descends over Hoima town, bringing another long night of rumbling generators. Read More
The international oil companies licensed to develop Uganda’s oilfields submitted a joint ‘field development plan’ to the government last Thursday, but rapid agreement on the plan is unlikely, given continuing differences over the size of the proposed refinery.
Whilst CNOOC has made no public comment, Tullow and Total representatives say they do not object to a refinery in principle but feel that it should be a modest one, able to process 25,000-30,0000 barrels of crude per day (bpd). That would be enough to supply Uganda with petroleum products. The remaining crude, the companies say, should go in an export pipeline to the East African coast. Read More
KABAALE PARISH, HOIMA DISTRICT: Kyapaloni village is deserted. The crowds in the once bustling marketplace are no more. Some homes are shut up, bushes have besieged others, and the gardens are empty of the crops they once boasted.
“The government has told us to begin packing our property and not to grow crops that take more than three months to mature. They said we shall be re-located from this place anytime soon to pave way for the refinery,” says Geoffrey Kiwedde, a Local Councillor II for Kabaale Parish in Buseruka sub-county of Hoima District.
Kiwedde still doesn’t know when he will have to move or when he will receive compensation for the 18 acres of land that he will give up. Read More
Uganda will start producing oil in two years time, while a ‘mini-refinery’ will be operational by 2017 according to the Commissioner of the Petroleum Exploration and Production Department (PEPD), Ernest Rubondo.
“We shall start at low levels of production—three to five thousand barrels of oil per day which will be used for thermal generation. In four years time, we shall have a small refinery of 20,000 barrels per day [bpd], which will be upgraded to 60,000 bpd in five years time, and expanded to 120,000 bpd in eight years time.”
Mr. Rubondo was responding to a passionate plea from the President of Tullow Oil in Uganda, Elly Karuhanga, who said that the oil companies and their partners were increasingly frustrated by the delay in commencement of production. He claimed that some of the service providers who invested heavily, in anticipation of early production, are now nearing bankruptcy. Read More
Visiting Ghana, a historic seed-bed of pan-Africanism, Oil in Uganda staff writer, Chris Musiime, found strong support for President Yoweri Museveni’s determination to establish a Ugandan oil refinery, in an effort to break the raw material export mould that has characterised—many would say, trapped—African economies since independence.
Some key figures in Ghana are urging Uganda to set up its own oil refinery, so as to reap maximum benefits from the country’s oil resources—even though Ghana’s own refinery experience has proved costly and contentious.
Hon. Kwabena Appiah-Pinkrah, the Member of Parliament from Akrofuomi in the gold-rich Ashanti Region, points out that for the entire Ugandan population to benefit, there must be value-addition to the crude oil from within Uganda. Read More
In the third of a series of reports from Ghana, Oil in Uganda staff writer, Chris Musiime, explains how the gas that accompanies oil discoveries can be a nuisance, and how Ghana finally overcame the problem.
“The bad news is that they didn’t find oil, but the good news is that they didn’t find gas either!”
This ironic witticism is recounted by John Peter Amewu at the Ghana Institute of Management and Public Administration in Accra, where he is teaching a summer school course in oil and gas for 46 participants from various African countries. He explains that, although countries like Mozambique and Tanzania have found sufficiently huge gas fields to make commercial extraction highly lucrative, energy explorers generally hate to encounter more gas than oil, especially in Africa, where the gas distribution system is not developed. Read More
A firm contracted by the government to design a resettlement and compensation package for people displaced by the Hoima oil refinery project expects to conclude its initial study this week, according to the contractor, Strategic Friends International (SFI).
“We are finishing a field study of the area this week. We shall then embark on writing up the findings and hand over the final resettlement study to the government in September,” Koseya Wambaka, SFI’s head of operations, told Oil in Uganda. Read More
As midwestern Uganda gears up for oil production that will entail billions of dollars in investments, a range of central government officials interviewed by Oil in Uganda admit that there is no overall development plan for the region, and no mechanism for coordinating the efforts of different departments. Read More