Updates on Uganda’s Oil and Gas By Ms. Irene Bateebe Permanent Secretary in the Uganda Ministry of Energy and Mineral Development
The final investment decision for the development of the East African Crude Oil Pipeline was taken on 2nd February 2022. Uganda is fast tracking the construction of the East African Crude Oil Pipeline (EACOP) and the National Oil refinery. In addition, the right of way for the Kabaale (Hoima) – Buloba refined products pipeline, and the financing for the refinery and associated infrastructure will be concluded. Preparatory work for the development of a petrochemical industry at the Kabaale Petro-based Industrial Park is expedited.
The Upstream and Midstream petroleum activities and operations in the country are being undertaken as follows: Oranto Petroleum Limited and Armour Energy Uganda Limited are licensed to undertake petroleum exploration, TotalEnergies E&P Uganda and CNOOC Uganda Limited are licensed to prepare the already discovered oil fields for petroleum production operations. On the other hand, the East African Crude Oil Pipeline (EACOP) Limited and the Albertine Graben Energy Consortium (AGEC) are developing and managing the infrastructure to commercialize Uganda’s Oil and Gas resources to be produced, namely the EACOP and Refinery, respectively.
In addition to these licensed oil companies, there are about 175 contractors and sub-contractors to those licensed companies. These include some of the world’s biggest and most well-established engineering companies, with significant capital bases and enormous experience. Some have now established full operational offices and facilities in the country.
Uganda is now one of the most established petroleum provinces in the world, with an estimated volume of 6.5 billion barrels, with 1.4 billion barrels are recoverable, of which 1.04 billion barrels are classified as reserves. Recoverable gas resources are estimated at 500 billion cubic feet.
To increase the country’s oil and gas resources, the Directorate of Petroleum in the Ministry continues to conduct geological mapping and geophysical surveys in the Moroto-Kadam basin. The surveys in Uganda’s northeastern districts of Moroto, Napak’ Nakapiripirit, Katakwi, Bukedea, Kapchorwa, Bulambuli, and Kumi cover a total surface area of 5,672 sq. km.
The EACOP project provides Uganda’s crude oil access to the international market and, therefore, enhances the value of the resources. The transboundary pipeline consists of a 30 meters wide corridor totalling 1,443 kilometres. It is approximately 296km in Uganda, starting at Kabaale in Hoima, traversing ten districts in Uganda and 22 in Tanzania, up to Chongoleani in Tanga.
In terms of employment, by November 2022, 6,233 people were employed within the sector, of which 5,875, representing 94%, were Ugandans. The 11 Licensees directly employed 506 people, 70% of whom are Ugandans, while their contractors and subcontractors employed 5,647 people, 97% of whom are Ugandans. Compared to the estimated number of jobs, this is slightly less than half of what is expected.