“Young legislators,calm down”.You can not lecture me on what to do in Uganda”Museveni

Uganda’s President Museveni yesterday had no kind words for Legislators in the European Parliament.

President Yower Museveni arrives for the Function.Photo by Ronald Kabuubi/KMA Updates.

President Yower Museveni arrives for the Function.Photo by Ronald Kabuubi/KMA Updates.

President Yower Museveni arrives for the Function.Photo by Ronald Kabuubi/KMA Updates.

He came out strongly and scoffed at the young law makers saying then do not know much about Africa especially Uganda to start disctating on What Uganda should do.The Europeans should concetrate on what  to do in their land.”I went there and saw them but they do not know much as they think.Iam not ignorant as some people think.Iam informed on these things on oil.Therefore,we shall proceed as before.

Irene Bateebe,Permanent Secretary,Ministry Of Energy and Mineral Development chats with Dr.Michael Nkambo Mugerwa,the General Manager Unoc.Photo by Ronald Kabuubi/KMA Updates.

Phillipe Groueix,General Manager  Total Energies EP Uganda (L) with Chen,the President Of Cnooc. Middle is the Executive Director Of of Petroleum Authority Of Uganda Ernest RubondoPhoto by Ronald Kabuubi/KMA Updates.

The Executive Director Of of Petroleum Authority Of Uganda Ernest Rubondo (L) with the Board Chairman Of Uganda National Oil Company (Unoc) Emmanuel Katongole.Photo by Ronald Kabuubi/KMA Updates.

The Executive Director Of of Petroleum Authority Of Uganda Ernest Rubondo (R) with the Chief Executive Officer Of Uganda National Oil Company (Unoc) Proscovia Nabbanja.Photo by Ronald Kabuubi/KMA Updates. The  Board Chairman Of Uganda National Oil Company (Unoc)  Mr.Emmanuel Katongole greets visiting West African guests .Photo by Ronald Kabuubi/KMA Updates. The  Board Chairman Of Uganda National Oil Company (Unoc)  Mr.Emmanuel Katongole greets visiting West African guests. Right is Chief Executive Officer Of Uganda National Oil Company (Unoc) Proscovia Nabbanja. Photo by Ronald Kabuubi/KMA Updates. Chief Executive Officer Of Uganda National Oil Company (Unoc) Proscovia Nabbanja (L) with a gentleman.Photo by Ronald Kabuubi/KMA Updates. The Executive Director Of of Petroleum Authority Of Uganda Ernest Rubondo with Alex Nyombi,the Director  Development and Production of PAU.Photo by Ronald Kabuubi/KMA Updates.   Phillipe Groueix,General Manager  Total Energies EP UgandaPhillipe Groueix (R) with the Business Develpment Manager Jean Gavalda.Photo by Ronald Kabuubi/KMA Updates. The Executive Director Of of Petroleum Authority Of Uganda Ernest Rubondo with  with the Board Chairperson of  UNOC. Ms. Jane.N. Mulemwa.Photo by Ronald Kabuubi/KMA Updates. 

Irene Bateebe,Permanewnt Secretary,Ministry Of Energy and Mineral Development chats with Dr.Michael Nkambo Mugerwa,the General Manager Unoc.Photo by Ronald Kabuubi/KMA Updates.

The President Of Cnooc Mr.Chen (L) with other guests.Photo by Ronald Kabuubi/KMA Updates.

(L-R):The Energy and Mineral Development Minister Hon.Dr.Ruth Nankabirwa,Phillipe Groueix,General Manager  Total Energies EP UgandaPhillipe Groueix,Board Chairman Unoc Mr.Emmanuel Katongole,Board chairperson Ms.Jane.N Mulemwa,Chief Executive Officer Of Uganda National Oil Company (Unoc) Proscovia Nabbanja,Petroleum authority Of Uganda (PAU) and Bukenya Augustine Guster, the Managing Director  of  Beautiful Engineering& Equipment limited.Photo by Ronald Kabuubi/KMA Updates.Photo by Ronald Kabuubi/KMA Updates.

EddieD.Okila,Founder and Ceo of House Of Talent hosting guests.Photo by Ronald Kabuubi/KMA Updates.

Irene Bateebe,Permanent Secretary,Ministry Of Energy and Mineral Development delivering her remarks.Photo by Ronald Kabuubi/KMa Updates.

“You need to control yourselves not to explode, so shallow, so egocentric, so wrong. But they think they know everything, they broadcast their ignorance all over the place but they should calm down because this is a wrong battleground for them,” he said.

Museveni added that they don’t take kindly to arrogance and that is why they spent so many years sorting out issues with arrogant people.

“And these are all young girls trying to lecture me on how to handle Uganda. I saw them, I went there and saw them. Somebody should counsel those young girls.”

Museveni added that EU parliament has enough to do in their own place, “I advise them to spend much time solving the problems of our people in EU because Africa has people who know what to do.”

President Yoweri Museveni is seen in a group Photo  with Stakeholders.Photo by Ronald Kabuubi/KMA Updates.

(L-R): The Permanent secretary of Energy and Mineral Development Engineer Irene Pauline  Bateebe,Board chairperson Uganda National Oil company (Unoc), Ms.Jane.N Mulemwa,the Minister of   Energy and Mineral Development Minister Hon.Dr.Ruth Nankabirwa and the Board Chairman Of Uganda National Oil Company (Unoc) Emmanuel Katongole.Photo by Ronald Kabuubi/KMA Updates.

(L-R): The Permanent secretary of Energy and Mineral Development Engineer Irene Pauline  Bateebe,Board chairperson Uganda National Oil company (Unoc), Ms.Jane.N Mulemwa and the Minister of  Energy and Mineral Development Minister Hon.Dr.Ruth Nankabirwa.Photo by Ronald Kabuubi/KMA Updates.

Ernest Rubondo, the Executive Director of Petroleum Authority  of Uganda (PAU) 2nd L; Edith  Tushabe Atuhurira,Comercial Specialist at the  Uganda National Oil company (UNOC), & other guests from Petroleum Technology Association of Nigeria (PETAN).Photo by Ronald Kabuubi/KMA Updates.

The  Board Chairman Of Uganda National Oil Company (Unoc)  Mr.Emmanuel Katongole,the Past District Governor awarding the Minister Of Energy and Mineral Development Hon.Dr.Ruth Nankabirwa on behalf of Rotary International for her Developments as a female legislator for Uganda.Photo by Ronald Kabuubi/KMA Updates.

EddieD.Okila,Founder and Ceo of House Of Talent hosting guests.Photo by Ronald Kabuubi/KMA Updates.

The Exective Director Of Petroleum Authority Of Uganda (PAU) Ernst Rubondo,the General Manager  Total Energies EP Uganda Phillipe Groueix,the Chief Executive Officer of Uganda National Oil Company Ms. Proscovia Nabbanja,the Director of Development and Production Of Petroleum Authority of Uganda (PAU),former Minister Of Energy and Mineral Development Engineer Irene Muloni and the President Of Cnooc Chen.Photo  by Ronald Kabuubi/KMA Updates.

The Exective Director Of Petroleum Authority Of Uganda (PAU) Ernst Rubondo,the General Manager  Total Energies EP Uganda Phillipe Groueix,the Chief Executive Officer of Uganda National Oil Company Ms. Proscovia Nabbanja,the Director of Development and Production Of Petroleum Authority of Uganda (PAU),former Minister Of Energy and Mineral Development Engineer Irene Muloni and the President Of Cnooc Chen.Photo  by Ronald Kabuubi/KMA Updates.

The General Manager  Total Energies EP Uganda Phillipe Groueix with the Chief Executive Officer of Uganda National Oil Company Ms. Proscovia NabbanjaPhoto  by Ronald Kabuubi/KMA Updates.

The General Manager  Total Energies EP Uganda Phillipe Groueix  taking to journalists afyter the function.Photo by Ronald Kabuubi/KMA Updates.

Museveni divulged, “We need to know that they are two crucial players. One player is the producer of a good or service. The one who uses raw materials and produces a good or a service.

“If you want to succeed sustainably, then you need a second person and this is the consumer. If you see the confusion going on in the world you can see that many people don’t understand this. Many people think they are very important.”

“Because if you don’t solve the issue of market or production and consuming you can be sure that the economies will not grow and that is what we have done here for the business people.”

The Minister Of Energy and Mineral development Hon.Dr.Ruth Nankabirwa  (Middle) with Visiting Nigerian investors at the Cocktail at Serena.Photo bvy Ronald Kabuubi/KMA Updates.

The Minister Of Energy and Mineral development Hon.Dr.Ruth Nankabirwa  (2nd left) with Visiting Nigerian investors at the Cocktail at Serena.Photo bvy Ronald Kabuubi/KMA Updates.

He asserted, “Therefore, we, apart from the market of Uganda have been working and when we came into government we pushed and created the East African Community (EAC), revived it, it had collapsed. So therefore when you talk of the market, you have the 43million people, you have the EAC, 300million now, you have COMESA and we have negotiated for the Continental Free Trade Area (CFTA).”

Museveni further revealed that at the beginning, he didn’t support the idea of the pipeline.

“‘Initially I didn’t not support the idea of the pipeline, but it’s Total Energies
that convinced me, I asked them where they were taking our petrol, because we also have energy needs here, why not build a refinery and we supply ourselves” he said.

He propounded, “Pipeline for what? Here in East Africa, we have got energy needs. Why don’t you be the refinery and we supply ourselves? We cannot have oil and then you find that we are stuck without petroleum when some Slavic groups start fighting. Ukraine and Russia are fighting and we are suffering, how can that be?

“So that is why we settled on the idea of a refinery and a pipeline, it is a compromise on my part because remember when I pump the oil through the pipeline, I lose money.”

Museveni said the idea of a pipeline actually costs Uganda upto 12.7 dollars for each barrel pumped through the pipeline’

“So therefore I encourage the oil companies to move on the two, the refinery and the pipeline.”

The EU Parliament has come under attack since they passed a resolution against Uganda-Tanzania EACOP patnership deal.

Recently, Deputy Speaker of Parliament, Rt.Hon.Thomas Tayebwa warned that the motion and resolution curtails progress of Uganda’s oil and gas developments.

“The motion and resolution are based on misinformation and deliberate misrepresentation of human rights violations and environmental destruction and thus represents the highest level of neo-colonialism and imperialism,” he explained.

PPU – UGANDA’S OIL EXPLORATION PLAN WILL BE IMPLEMENTED ACCORDING TO SCHEDULE – H.E MUSEVENI

HON. DR. RUTH NANKABIRWA SSENTAMU

MINISTER OF ENERGY AND MINERAL DEVELOPMENT, UGANDA

INTRODUCTION

1. I would like to thank the organizers of the Uganda International Oil and Gas Summit for inviting me to the 7^th edition of the summit and for giving me the opportunity to address the participants. “Harnessing Uganda’s Investment and Growth” which is the theme for the summit directly speaks to the stage at which Uganda’s oil and gas sector is at.
2. Having achieved the Final Investment Decision in February, 2022 for the upstream and the EACOP, Uganda is at appoint where the projects have significantly matured and are progressing to First Oil in 2025. This summit is therefore timely.
3. This summit presents a good opportunity for Uganda to share the current developments in the oil and gas together with the energy and mineral sectors including available investment opportunities. I am therefore glad that this year’s edition has been expanded to include energy and minerals.
4. Uganda made the first commercial discovery of oil in 2006 and it is estimated that the country’s in place volume of oil resources to-date is Six and half (6.5) billion barrels of oil equivalent of 1.4 billion barrels is recoverable. Some gas reserves, estimated at 500 billion cubic feet have also been confirmed, but Uganda’s Albertine Graben is majorly an oil province.
5. The discovered crude oil and gas is being commercialised through a refinery and crude oil export pipeline whose development is progressing steadily.
6. In terms of the progress, a lot has been achieved and is being witnessed on the ground. The ongoing developments have seen the creation of employment and business opportunities and civil works on the project sites.
7. In addition, Uganda is also endowed with other natural resources such as hydro, geothermal, minerals, wind, solar, thermal yet only a small fraction of this potential has been developed. We therefore interest investors to come and partake of these enormous opportunities.
8. Oil development has already caused infrastructural development in the oil and gas region and is expected to generate revenue for the country which has already been ringfenced for infrastructure development. This will also create employment opportunities, ensure security of supply for refined products and socioeconomic development of the country. With additional investment in the sector, we expect more benefits to the Ugandan economy.
9. Uganda is aware of the global push for energy transition and we are developing the oil and gas resources with this in mind. The expectation from the oil and gas exploration and development includes revenue generation, employment, industrialization and infrastructure development among others which are key pillars in sustainable development. Through provision of LPG, the oil and gas sector will also play a key role in enabling the country to meet its climate changes obligations as it provides a cleaner option to biomass.
10. The country has taken steps to ensure that oil and gas activities are implemented in a manner that minimizes pollution. For instance, the petroleum and environment legislation prohibit flaring and gas venting. Oil companies cannot flare or vent petroleum more than the quantities needed for normal operational safety. All facilities are required to be planned and constructed to avoid gas venting or flaring under normal operating conditions. This basis underpins our commitment to reduce emissions by our petroleum activities.
11. Uganda is pursuing the Sustainable Development Goals including SDG on access to modern energy for all, which are largely in line with its Vision 2040 whose goal is to transform Uganda from a peasant to a prosperous country within 30 years. The Vision is implemented through National Development Plans and the National Development Plan III which is under implementation identifies the petroleum and mineral industries as some of the anchors for the transformation of the country.
12. Uganda’s policy therefore emphasizes the need to utilise the resources to create value for the citizens and the region. In this regard as a country, we are earnestly pursuing ENERGY INTEGRATION.
13. In the spirit of making the East African region a hub for petroleum and energy, Uganda will be hosting East Africa’ premier petroleum conference, the East African Petroleum Conference and Exhibition (EAPCE) from 9^th -11^th May, 2023. Participants will be able meet and interact with leaders, policy makers and potential business partners from EAC member states and beyond, in one place.
14. As part of the strategy to exploit its oil and gas resources in a sustainable manner, the country is announcing the 3^rd licensing round in 2023 and urges oil companies to take interest in this licensing round since the FID and developments for the Upstream and EACOP has unlocked the sector in Uganda.
15. On the energy side the country is working to increase generation of energy and modernization and expansion of energy transmission and distribution. This presents opportunities for investment in generation, transmission and distribution.
16. The country recognizes the significance and potential of the mining sector characterized by the mapping of a number of minerals in the country including precious minerals, iron ores, base metals, rare earth elements, uranium, industrial minerals among others. In this regard, the policy and legal framework has been reviewed and updated which is expected to streamline the management and regulation of the mining sector in the country.
17. As I conclude, allow me to thank His Excellency Yoweri Kaguta Museveni the President of the Republic of Uganda for the steering the oil and gas sector which has led to the ongoing developments. With these remarks, I want to take this singular opportunity to invite His Excellency to address us and officially open the Summit.BY Irene BateebePERMANENT SECRETARYMINISTRY OF ENERGY AND MINERAL DEVELOPMENTATTHE 7^THUGANDA INTERNATIONAL OIL AND GAS SUMMIT (UIOGS), KAMPALA – UGANDA27^TH SEPTEMBER 2022
    • Your Excellency Yoweri Kaguta Museveni-President of the Republic of Uganda
    • Honourable Ministers Present
    • Honourable Members of Parliament Present
    • Representatives of Government
    • Oil companies and other energy-related company representatives
    • Members of the media fraternity,
    • Invited Guests,
    • Distinguished Ladies and Gentlemen.

    INTRODUCTION:

    1. It is my pleasure to join hundreds of leaders, investors and stakeholders in Uganda’s oil and gas industry at the 7^th Uganda International Oil and Gas Summit (UIOGS) 2022. I thank the organisers for the invitation and laying down an impactful program with a wide range of issues relating to the energy sector.
    2. Before I proceed to the key developments being undertaken following the Final Investment Decision on 1^st February 2022, allow me provide a brief status of Uganda’s Oil and Gas sector.
    3. The development of Uganda’s oil and gas sector is guided by our National Oil and Gas Policy developed in 2008 and progressive laws that have been improved to facilitate private investment in the sector. The policy highlights the principles governing the development of petroleum resources and strategic objectives that address the challenges and opportunities of discovering these natural resources. Our key areas of focus are:
       • Efficient Resource Management,
       • Transparency and Accountability,
       • Competitiveness and Productivity,
       • Protection of the Environment and Conservation of Biodiversity,
       • A Spirit of Co-operation, and
       • Capacity and Institution Building.

    The 2008 policy is currently being reviewed to accommodate the emerging global energy transition aspects.

    4. The first commercial discovery of oil in Uganda was made in 2006. Since then, twenty (21) oil and gas discoveries have since been made with an estimated resource base of 6.5 billion barrels of which 1.4 billion is recoverable. These discoveries have been made in less than 40% of the entire Albertine Graben which is our major prospective area.

     

    5. In order to continue expanding our resource base, in 2017 the country granted three exploration licenses to Oranto Petroleum and Armour Energy through a competitive bidding process. In 2019 the country embarked on the second licensing round to attract investors to come and explore for Oil in the Albertine Graben. This process is ongoing and is currently in the final stages of negotiations of Production Sharing Agreements. This process is expected to be concluded by the end of this year.
    6. I wish to inform you Ladies and Gentlemen that the Albertine Graben is not the only prospective area with regards to Oil and Gas in Uganda. The Ministry is exploring other basins that have potential to hold Oil and gas in the Country. We are currently undertaking exploration work in the Moroto -Kadam basin to ascertain the petroleum potential in that area. We are hopeful that this will increase Uganda’s resource base from the current confirmed 6.5 billion barrels of in place.

    FID AND THE DEVELOPMENT PHASE

    7. You will recall that Government of Uganda together with its partners TotalEnergies EP Uganda, CNOOC Uganda Limited, the Uganda National Oil Company (UNOC), and the Tanzania Petroleum Development Corporation (TPDC) announced the Final Investment Decision on 1^st February 2022.  Following this decision, several works have been undertaken and many are ongoing. Approximately USD 10-15 billion is expected to be invested in the Country in the next 3-4 years. These investments present opportunities for the participation of investors including Ugandans.

     

    8. Significant progress has been registered on the flagship projects on oil and gas in the country which are Kingfisher, Tilenga, EACOP and the refinery and the plans are to have First Oil in 2025. Progress on the projects is as follows:

     

    2023. For Tilenga which is operated by TotalEnergies and will host a Central Processing Facility (CPF) with the capacity to process 190,000 barrels per day, 426 wells to be drilled on 31 well-pads, over 170km of buried flowlines, and a 96km feeder pipeline to the Kabaale delivery point, among others, clearing of the Central Processing Facility (CPF) Industrial Area site is ongoing together with detailed engineering and construction of rigs. The drilling rigs are expected to arrive in Uganda between November 2022 and March 2023. With drilling expected to commence in December 2022.

     

    2022. For the Kingfisher Development Project which is operated by CNOOC Uganda Ltd and will host a CPF to process 40,000 barrels per day from 31 wells to be drilled on four well-pads, drilling rig construction was completed and some of the rig components are already in Uganda. Drilling is expected to commence in December 2022. The site preparation works, and related civil works are ongoing together with the Engineering, Procurement and Construction (EPC) works.

     

    2023. The East African Crude Oil Pipeline Company Ltd submitted an application for a construction license which government is reviewing with a target of granting the license before the end of the year. Detailed design works, construction of the coating plant for insulating all line pipes at Nsojo, Nzega, district, Tabora, in Tanzania, Geotechnical investigation at the marine storage terminal at Tanga as well as, land acquisition in Uganda and Tanzania including construction of resettlement houses for PAPs are ongoing. Discussions on the financing for the project are also progressing well and construction is expected to commence in 2023.

     

    2023. In 2018, Uganda entered into a Project Framework Agreement (PFA) with the Albertine Graben Energy Consortium (AGEC) to develop a 60,000 barrels per day Oil Refinery. Implementation of the Refinery project, where the Uganda National Oil Company (UNOC) has a 40 per cent shareholding is progressing and the Final Investment Decision is expected in 2023.The refinery configuration and Front-End Engineering Design were concluded and negotiation of the requisite agreements is ongoing.

     

    9. The country is also developing the Kabaale Industrial Park (KIP) – a specialised petro-based industrial park designed on 29.57km² of land in the Hoima district near the oil fields. KIP is a strategic commercial venture that will accommodate anchor projects such as the Refinery, the second largest International Airport in Uganda, and Crude Oil Export Hub. In addition, it will host petro-based industries such as plastics, fertilisers, and petrochemicals.

     

    10. Development of all the oil and gas projects is anchored on a robust legal, regulatory and institutional framework based on responsive laws that were put in place to ensure effective and efficient management of the oil and gas resources. For instance, the laws on petroleum, revenue, environment and wildlife were updated to address the contemporary issues associated with the oil and gas sector.

     

    11. The Government has also taken deliberate steps to put in place plans and strategies to ensure that the exploitation of the oil and gas resources is done within an environmentally and socially sound framework. These include a Strategic Environmental Assessment (SEA) of the oil and gas activities in the Albertine Graben, an Environment Monitoring Plan for the Albertine Graben, Sensitivity Atlases, Management plans for protected areas and Land Acquisition and Resettlement Framework.

     

    12. Before commencement of any activity, a comprehensive Environment and Social Impact Assessments (ESIA) that meets international standards in addition to national standards, is undertaken to identify the social and environmental impacts of a project as well as the measures to reduce the impacts and maximize the benefits.

     

    13. ESIAs are undertaken by the oil companies in consultation with all relevant stakeholders who include the Project Affected Persons. The PAPs are provided with an opportunity to freely express their views on how they might be affected by the projects. Oil projects are one of the very few projects in Uganda for which public hearings have been held to ensure maximum stakeholder participation. Subsequently, all projects were granted Certificates of Environmental Impact Assessment by the National Environment Management Authority.

     

    14. The land acquisition processes for Uganda’s oil and gas projects is undertaken in line with the existing laws and regulations, and incompliance with the international statutes such as the International Finance Corporation (IFC) performance Standards and the Equator Principles. These provide for prior and informed consent, together with adequate and timely compensation PAPs prior to their relocation and access by the project. Livelihood restoration/ improvement based on adequate livelihood restoration packages for affected households is part and parcel of the land acquisition process.

     

    15. As the projects progress the country is witnessing more benefits to Ugandans in terms of opportunities. For instance, priority for employment is given to Ugandans at all levels, with positive discrimination for the communities hosting the operations. At the peak it is expected that about 160,000 people will be employed. Following the announcement of FID, a number of employment opportunities have been created and to date, 94% of the close to 5000 employees already engaged in these projects are Ugandans.

     

    16. We also continue to work with the government of the United Republic of Tanzania to promote and support the EACOP project and ensuring employment and business opportunities are accessible to citizens and business from the two countries.

     

    CONCLUSION

     

    17. Distinguished guests, we and our development partners are committed to commence production in 2025. However, over the past few years, we are being faced by a number of challenges ranging from economic impacts of the COVID-19 pandemic to negative campaigns against Uganda’s Oil and Gas projects. This summit will be conducting a number of discussions on the green transition where details of Uganda’s participation in the global energy transition will be further explained.

     

    18. I wish to categorically state that as a Country, we have put in place several measures to produce our oil an environmentally and socially effective manner. These measures will be discussed in the next panel discussions.

     

    19. I finally thank you for listening to me and now I welcome you all for the panel discussion.