NRM Govt Is Committed To Exploiting,Developing Uganda’s Oil Sector -Ainesasi

This is why the government of Uganda led by NRM leader President Yoweri Kaguta Museveni has not hurriedly to exploit oil but instead has taken cautious steps to move steadily and do the right thing.
Deliberate steps have been taken to develop upstream value chain activities first before we embark on production. The sector has transitioned from exploration and appraisal to development and preparation for production of oil. The necessary policy legal regulatory and institutional framework are in place as well as the necessary infrastructure , to support the oil and gas activities.

Government in 2018 approved the local content policy for the oil and gas sector. The policy aims at increasing participation of Ugandans and provides principles for capacity building for national enterprises, skills development as well as establishment of a Local Content Development Fund to support national enterprises and promote national participation in the industry.

In addition, the directorate of Petroleum in the ministry of energy and mineral Development,Petroleum Authority of Uganda( PAU) and the Uganda National Oil Camping (UNOC) were operationalized to promote, licence, regulate the petroleum industry and manage the business/commercial interests.

The policy, licencing and regulatory interventions have fostered effective and sustainable management of the oil and gas sector. For instance, Uganda completed the first competitive licencing round resulting in the issuance of three exploration licences to Oranto Petroleum of Nigeria and Armour Energy Ltd of Australia in 2017. Nine production licences over 14 field discoveries that the government issued to Total E &P, Tullow Uganda Operations PTY Ltd and CNOOC Uganda Ltd. This was a milestone in the development phase of the petroleum value chain, and is being implemented under two separate projects -The Tilenga in Bulisa and Nwoya districts and Kingfisher in Hoima and Kikube districts.

Progress .
A. Refinery Development.
Government on 10th April 2018 signed the project framework agreement Agreement (PFA)with the Albertine graben Refinery consortium (AGRC) as the potential investor who will design, build, Finance and operate the refinery.The consortium consists of Yaatra Africa LLC, Lion works group, NUovo Pignone international SRL (a Baker Hughes company), General Electric and sapiens SPA.

!! pre-FID (final investment Decisions) activities for the refinery project: The Front-End Engineering and Design (FEED) study continued in Milan, Italy and is currently estimated to be 75% complete.

The environmental social impact assessment (ESIA) commenced in March 2020. The study will last 18 months.

!!! Land acquisition for refinery Development: Resettlement of project affected persons (PAPs) has progressed well, schools,houses and health centres have been constructed and increased use. Relocation of graves to pave way for construction of Kabale international Airport was undertaken. Construction of Anglican Church in Wambabya, Buseruka and Catholic church in Nyakasinin, Buseruka was completed and handed over in November 2019. The policy post in Kyakaboga, Buseruka is 85% complete. All PAPa who signed for compensation (Which is about 99.3%) have been compensated. Discussions are ongoing with part of the remaining 0.7% of the affected persons who who have showed up. Making of refinery land boundary was completed.

Ainesasi Hillary
Deputy National In Charge of Mobilization and Field Operations
Located at Malcolm X plot 10 kololo.


Leave a Reply