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  • Kenya's Prime Minister Raila Odinga is set to contest for the Presidency in March. Oil revenue will be key to the success of the incoming government's programmes.

    Kenya sets tough terms for next oil acreage licensing round

    Kenya’s Prime Minister Raila Odinga is set to contest for the Presidency in March. Oil revenue will be key to the success of the incoming government’s programmes.

    Any oil company intending to acquire an oil exploration licence in Kenya will have to present audited – accounts showing a minimum cash balance of at least one hundred million dollars. Successful bidders will be required to part with a signature bonus of one million dollars, as well as spend at least half a million dollars on “Community Development Projects” in Kenya every year. The oil companies will also have to spend a minimum of 200,000 dollars per year on training Kenyans to equip them with skills for the oil and gas industry.

    Speaking to Oil in Uganda in an exclusive interview in Nairobi last week, Kenya’s Commissioner for Petroleum Energy, Martin Mwaisakenyi Heya, revealed that Kenya had decided to take measures to discourage smaller oil companies from entering its oil and gas sector. Read More

  • Image: Bukenya Matovu

    “As soon as the president assents, everything will be in motion”

    Bukenya Matovu, Senior Assistant Secretary in the Ministry of Energy and Mineral Development

    What are the next steps in establishing the Petroleum Authority and National Oil Company mandated by the upstream Petroleum Bill passed at the end of last year?  Why has the president, who repeatedly intervened to push the bill through parliament, not yet got round to signing it?  When will the government invite bids from companies keen to take up new exploration licences?   What are the prospects for East African countries to come up with a joint, win-win, oil infrastructure development plan?  And with so much oil and gas prospecting in the region, can Uganda be sure that there will be a local export market for products from the country’s planned oil refinery?  These are the among the questions addressed by Mr. Bukenya Matovu, Senior Assistant Secretary in the Ministry of Energy and Mineral Development and the ministry’s main spokesperson , in the following, exclusive interview, transcribed in full. Read More

  • Image: Christmas turkey

    So you think you know about oil? And want to be a millionaire?

    For this young man, a bird on the shoulder is worth more than a barrel of oil in the bush (Photo: NY)

    The Oil in Uganda team extends warm, seasonal greetings to all our readers.  Also, to entertain you in between bouts of feasting, we have prepared a little quiz to test your general knowledge of oil  in Uganda and beyond.  Doing the quiz won’t, alas, make you a millionaire, but you may glean some interesting–and some shocking–facts. The answers to the following twenty questions appear at the end of the text—together with a ‘performance assessment’ depending on how many questions you answered correctly. Read More

  • Kenya to hike fees for oil explorers, introduce competitive bidding

    As Kenya prepares to become an East African oil producer, its Energy Minister has said that they plan to increase fees for oil companies operating in the country as more oil and gas is discovered.

    Speaking at the inauguration of the East Africa Oil and Gas Summit in Nairobi on Tuesday, an optimistic Hon. Kiraitu Murungi noted that the government needs to cater for the interests of its people by raking in more revenues from the oil and gas industry to finance the provision of basic services. Read More

  • Summaya Athmani, head of Kenya's National Oil Company, apeals for regional collaboration on oil infrastructure

    “We are not competing with Uganda” says Kenyan oil leader

    Summaya Athmani, head of Kenya’s National Oil Company, apeals for regional collaboration on oil infrastructure

    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

  • Ghana set to join the league of big African oil producers

    Oil and gas are likely to play an ever more prominent role in Ghana’s fast-growing economy following new discoveries both in the Jubilee field and the Tano Basin.

    Italian giant Eni, made a major discovery last month in the offshore Cape Three Points block, some 50 kilometres from the coast. Eni is continuing to drill other wells to confirm the feasibility of commercial development, but the production test revealed that this new well is capable of producing about 5,000 high quality barrels of oil per day (bpd). Read More

  • Image: Lake Malawi border map

    Oil fuels border disputes over Lake Malaŵi and Ilemi Triangle

    Source: www.tzaffairs.org

    Oil and gas discovers in East Africa have re-ignited long-standing territorial disputes in areas believed to possess significant petroleum deposits.

    This week, Malaŵi announced it would take Tanzania to the International Court of Justice in The Hague, Netherlands, over the disputed ownership of Lake Malaŵi, known in Tanzania as Lake Nyasa.

    Tanzania claims that colonial era treaties between Great Britain and Germany demarcated the border down the middle of the lake but since independence Malaŵi has claimed sovereignty over the whole of its northern reaches. Read More

  • oil paint by Ismael Kateregga

    Analysis: Despite ‘new’ oil, government and companies remain deadlocked over refinery; Tullow’s woes accumulate

    TOTAL MAY BE SET TO MOVE CENTRESTAGE IN UGANDA'S OIL INDUSTRY (Painting: Untitled, oil on canvas, by Ismael Kateregga)

    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

  • Tema_thumb

    Uganda needs a refinery, despite our problems, say Ghanaians

    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.

    Ghana’s Tema Oil Refinery: expensive and inefficient, critics say, but the Government of Ghana appears committed to keeping it going.

    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

  • Pie chart: Ghana mining revenues (2009)

    Ghana: taking revenue transparency seriously

    Source: Ghana EITI aggregated report, 2009. EITI yearly reports give detailed information on revenue flows to government, broken down by company, sector, type and destination of receipts.

    In a fifth report from Ghana, Oil in Uganda staff writer, Chris Musiime, describes the country’s efforts to institutionalise transparency in the handling of revenues from oil and mining industries.

    Mismanagement of revenues from the extraction of natural resources is widely cited as a major factor leading to the much-feared “resource curse”—the paradox that countries with an abundance of natural resources tend to have slower economic growth and, in many cases, more instability, than their less endowed counterparts.

    To avoid this, Ghana joined the Extractive Industries Transparency Initiative (EITI) in 2003, as a way of tracking revenues from its minerals trade, eventually extending the practice to the oil and gas industry in 2010. Read More