How the Uganda Oil refinery is expected to look like after construction

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Uganda’s Minister for Energy and Mineral Development, Irene Muloni, and Roger Cressey, CEO of Armour Energy, speak to the media before signing a Production Sharing Agreement (PSA) in Kampala, Uganda, September 14, 2017. REUTERS/James Akena

The signed pact between the Government of Uganda and Amour energy limited consists of key provisions that provides the company license with an acreage of 344 sq kilometers for four years, drilling at least one well, payment of royalty raging from8.5% to 21% based on gross total daily production in barrels of oil per day, state participation at 20% among others.

Meanwhile, the CEO, Amour energy limited, Roger Cressey expresses committment to follow all the production and exploration guidelines as they go on with business and confirms setting aside over USD.1.98Bn to facilitate the running of business in Uganda where he says there are more oil opportunities to explore in the near future.

 Uganda currently boosts of 6.5 million barrels of oil in her wells.

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Irene Muloni, the Energy Minister

The Minister for Energy, Irene Muloni, has been tasked on  ensuring that Presidential power pledges are fulfilled to enable Ugandans in different communities to engage in meaningful projects.

Members of Parliament sitting on the Infrastructure Committee led by Mukono North MP,Muyanja Senyonga, asked the minister to act on the pledges because many of the them have over stayed.

Senyonga  says that the islands and  many sub counties across the country  have had their presidential pledges on power spanning more than 20 years but nothing is done fulfill them.

He says that some parts of the country are lagging behind for lack of power and once it is delivered it will kick start many income generating projects.

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Energy and Minerals Minister, Eng. Irene Muloni

This concern was raised by the minister of Energy and Mineral Development, Irene Muloni while responding to the concerns of the members of parliament on the capacity of the authority to asses the environment impact for any activity carried out in the rift valley basin.

Muloni said that oil and gas is still a new industry in the country which NEMA had not planned for initially and therefore the need for support from parliament to empower the authority.

Muloni’s call was emphasized by the minister of tourism Ephraim Kamuntu who says that NEMA needs to be strengthened in terms of man power and finance.

The two ministers however said that the authority currently uses other prequalified companies to asses the environment and therefore no project is being carried out without its environmental impact assessment report.

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In a press conference Wednesday evening, Museveni said the government is making all efforts to follow due process in awarding contracts to oil companies and ensuring that Ugandans benefit from the oil resources.

Museveni at a press Conference

This follows a special Parliamentary sitting on the oil sector in Uganda which ended today calling for investigations into bribery allegation against senior government ministers who have allegedly given oil companies favourable terms to fleece Ugandans in return to hefty bribes to the ministers.

Museveni tells Journalists that he fully supports investigation on the officials because the government wants to ensure transparency in the oil sector.

The president asked Ministry of Energy and Minerals Permanent Secretary, Kabagambe Kalisa to explain why the oil sharing agreements have not been made public, the major cause of outcry by parliamentarians and Ugandans.

Kalisa explained that oil agreements in most countries have secret clauses because of the nature of the resource and the long process of its exploration, production and distribution.

The Minister of Energy and Minerals, Irene Muloni said it is not true the oil sharing agreements have been kept secret from parliament, insisting that the ministry presented the Production and Oil sharing agreements before Parliament’s Committee on Economy in July 2010.

She however acknowledged that they agreements had to be accessed in accordance to some conditions including the presence of a trusted government official.

Ultimate Media

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Addressing press conference today in Kampala, the attorney general, Peter Nyombi advised MPs to follow the correct procedures if they need to take a detailed look at the oil pacts between the government and exploration companies, Tullow and Heritage oil.

Nyombi also advises the public to go slow on the oil deal since the matter is before court but also reveals that local lawyers can not be allowed to execute their duties in international court which prompted the government to hire an international law firms to work together with the local based legal team in the case filed against the government by heritage oil.

But the energy minister, Irene Muloni insists that the pacts were presented before the 8^th parliament and that parliament has copies of the agreements. She says at the appropriate time, the public will get to know what’s contained in the agreements of the oil resource they are about to benefit from.

Meanwhile, URA boss, Allen Kagina confirms that that the government will accrue a 30% of revenue (USD 1.45Bn) in the capital gains dispute case resulting from Heritage Oil sale of its assets to Tullow Oil Uganda.

She says the government has budgeted 11.9 billion shillings for senior international lawyers who will argue Uganda’s case, with each lawyer set to earn 747 US dollars per hour.

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According to the energy minister, the government last changed the taxes on fuel over two years ago.

She says that the current taxes if reduced will greatly affect government revenue collections, which revenue funds government activities and facilitates development.

Muloni is appealing for patience from nationals of Uganda as the government tries to solve the current economic woes, including high fuel prices.

She also says Uganda will soon start producing and refining her own fuel from the Bunyoro oil reserves and the fuel prices will go down, in addition to boosting the country’s export earnings through oil products exports.

A cross section of MPs had earlier on appealed to the government to cut fuel prices which they say are responsible for the high prices of most goods and services.

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Irene Muloni, Uganda's Minister of Energy and Mineral Development

The Minister of Energy and Mineral Development, Irene Muloni says once most Uganda areas access low cost reliable electricity, industries will be set up across the country to add value to agricultural produce.

She says Bujagali hydro power Dam will generate a total of about 250 mega watts. However one turbine out of the five (5) each with fifty (50) mega watts goes into operation in October this year to boost the current power supply.

This was disclosed at Bujagali hydro-power project during an inspection work tour by the minister of energy and mineral development engineer Irene Muloni.

She revealed further that construction of Karuma power project with an additional 600 mega watts starts next year.

The thermo power generation Muloni said had proved to be so expensive for the government to facilitate hence leading to the current power blackouts.
By Mugisa Isaac Mathias

The post Government to industrialize rural areas after stabilising electricity supply first appeared on Uganda Multimedia News & Information.

The minister of state in-charge of finance Aston Kajara has told MPS on budget committee of parliament his office is in the process of negotiating with private companies to receive part payment as government waits on parliament to approve the balance.

Electricity Company UMEME LTD announced a 12 hour load shedding schedule after private suppliers Agreko, ElectroMax and Jecobson switched thermo power supply for non payments of arrears by the government.

The minister said thermal energy generating companies have agreed to resume generating power despite parliament declaiming for the 2nd time to approve the 92 billion shillings debt owed by government.

The firms had stopped generating power insisting that government should first clear the debt something forced the power distribution company UMEME LTD to announce a 24 hour load shedding.

Energy minister Irene Muloni says she discussed the matter with companies following a directive by parliament on Monday and the companies agreed to supply power out of good will.

Muloni however said the Agreko plant in Jinja is going to be decommissioned because water levels have increased to produce on extra 40 mega watts. She was reporting back to the joint committee on budget and natural resources before which the 92 billion shillings request was tabled.

By Mugisa Isaac Mathias

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The ministry of finance energy last week requested parliament to approve a supplementary budget of 62 billion shillings to enable the ministry of energy pay the thermo power suppliers.

However the budget was rejected by MPs on grounds that parliament had not received accountability for the 92 billion shillings which they approved in April for the same purpose.

The matter was referred to the committee of budget and natural resources. One of the members on this committee also mp for Rwampara Vincent Mujuni Kyamadidi says they need the minister to first explain why there is load shedding yet the money which was approved could run the power supply companies up to September this year.

Uganda is currently facing an acute power crisis which economic experts are worried will slow down the country’s economic growth.

By Isaac Senabulya

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