Wednesday, 10 February 2016

That's My Oil: President Yoweri Museveni

That's My Oil: President Yoweri MuseveniPresident Yoweri Museveni, likes to dash himself as the only guard of the east African state’s oil finds. “[That’s] my oil,” he says, warning that he “won’t allow anybody to play around   He admits that minerals have a great prospective of contributing to economic growth and poverty alleviation through job creation.

Museveni claims of creating a strong foundation for the management of oil and gas and other natural resources. “You hear people say ‘Museveni should go’, but go and leave oil money,” said the president, at a campaign rally in eastern Uganda recently.   Sub-Saharan Africa is the fastest growing oil-producing region in the world, with production having increased by 36 per cent in the past 10 years against a 16 per cent rise worldwide. It is projected that over US $50 billion, the largest such amount in African history, will be invested in Africa by end of this decade as a result of the oil and gas discoveries.

Uganda is one of the African countries that are expected to benefit from augmented flow of investment resources. Uganda has discovered 20 oil fields containing 64 wells of which 59 are productive. This is roughly 2.5 billion barrels. Between 1 billion to 1.5b barrels is extractable. If the country produced 100, 000 barrels of oil per day, it is projected the deposit will be exhausted within 30 years Uganda has an economy that is growing fast. Uganda has one of the highest GDP growth rates in sub- Saharan Africa. We can see a country that is developing.  

As far as oil sector is concerned, it is going to be a game changer for the country. The development of oil will then be a promoter to take a big hop. It comes in addition to efforts made by government to develop infrastructure which is key to developing the resources. It has been wisely said been that if you have the right infrastructure projects, it makes it easier to develop your resources.  

Uganda says it will get the best deal from its oil and invest the profits in infrastructure and agriculture. But there are daunting hindrances on the path to prosperity The country discovered oil in 2006, around the same time as Ghana. Uganda is anticipated to start pumping in 2018, after delays due to court tussles over oil firm contracts and negotiations on building a refinery.

The area explored so far - about 40% of the basin - has an estimated 6.5bn barrels of oil reserves; at least 2bn barrels are expected to be commercially viable.   Over the past three years, the country has enacted laws and taken time to scrutinize production sharing agreements to certify that Uganda gets the best possible deals. Read more.....

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