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OPINION: Oil and Gas, Great Engine of Economic Transformation for Uganda

By Arthur Musinguzi

Former New Vision Journalist and now Pastor, Joseph Kabuleta recently deceived citizens that Uganda is selling its crude oil. Such propaganda is unfounded. The oil is kept intact in 5 different locations including Kasemena 1, Bulisa and contain 45,000 barrels extracted during exploration.

I want to implore my friend, Kabuleta to find time and visit the oil exploration area (Albertine region). Speaking the truth is one of the cardinals of a Christian. Wondering why a pastor of his caliber is part of lies.

In today’s society, one needs to talk from an informed point of view to represent the facts objectively. The saddest part about it is that, he doesn’t even take positive criticism on the matter. It’s very absurd that a former Journalist can be comfortable in disseminating deceptive information.

The mandate of the Petroleum Authority of Uganda (PAU) is to monitor and regulate the exploration, development and production, together with refining, gas conversion, transportation and storage of petroleum in Uganda.

Even under such baseless accusations, I am glad that the Government of Uganda is committed to the Development and Production of the Country’s Oil and Gas Resources despite challenges that affected the taking off of the Final Investment Decision (FID) for the Tilengaand Kingfisher Projects (Upstream) and EACOP Project. This is seen as an indicator to economic transformation.

Today, when you visit Hoima and other oil exploration areas, technical works are either complete or ongoing. The FEED, ESIA and Land Acquisition studies for all the projects have either been concluded or are in advanced stages; geotechnical surveys for the facilities have been concluded.

With all what is happening, it would be bad for one to say government of Uganda is doing nothing to develop the economy. Government in pattern ship with China National Offshore Oil Corporation (CNOOC) have worked on many roads in the region. Completion and upgrading of the King Fisher Oil Field Access Road. Previously, workers and residents of the area used water as means of transport but as of now, road network is now in place.

Government is investing more than USD1 Billion to construct 700 + kilometers of roads. The Petroleum Authority of Uganda’s primary focus should be on ensuring that the journey towards our first oil drop is one that brings in optimal value and benefits to the country and investors. As a result of discovery of oil in the Albertine region, infrastructure has been improved from health centers, housing, and schools to facilitate students with computers as Corporate Social Responsibility (CSR) by Tullow.

One of Uganda’s Oil Feilds

Notably, most of the labour force employed in the Oil and gas industry is domestic. In fact, the employed number is more than the agreed one in fulfillment of the aspect of Local Content. Over 160,000 new jobs are yet to be created as well. You never know I might be heading there too.

Construction of the Kabaale/Hoima International Airport commenced and will start operating in 2023. It’ll facilitate development of oil and gas in the short run but in future support agriculture and tourism too.

Obviously, that means less strain on Entebbe Airport and Uganda having at least 2 fully functional airports. The relationship between the oil and gas and tourism sectors is marvelous.

You know this area is near Lake Albert which is a tourist destination. Over 80% of the oil roads being developed in the country are also tourism roads, and where a continuous stream of the thousands of visitors, who are expected to come into the country to participate in, or support, the oil and gas developments during the next 3-5 years of heightened activities, will contribute to the growth of the hospitality industry. 

In a nutshell, the world should be ready for the 1.4billion barrels of oil to be produced by Uganda. There’s no doubt that the US 20 billion dollars to be invested in the next 3 years will be domesticated to create value within our Economy.

However, one may wonder of the environmental health risks that may be associated to the exploration but with Enviro Save Uganda at the site, you can be sure of no harm. Thank you to Petroleum Authority of Uganda (PAU), Uganda National Oil Company (UNOC) and China National Offshore Oil Corporation (CNOOC) for all your efforts in developing our Country.

The Writer is a Communication Assistant at Government Citizen Interaction Centre (GCIC), Ministry of ICT and National Guidance.

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