Uganda Doubles Oil Industry Budget as Production Nears Kampala, Uganda – The Ugandan government has significantly increased its budget allocation for the oil industry in anticipation of the commencement of commercial oil production. The revised budget, approved by Parliament, now stands at 6.4 trillion Ugandan shillings ($1.6 billion), more than double the previous allocation of 3.1 trillion shillings ($784 million). “This is a clear indication of our commitment to ensuring that we harness our oil and gas resources for the benefit of our people,” Energy Minister Ruth Nankabirwa said. The increased funding will primarily support infrastructure development, including the construction of an oil refinery, a crude oil pipeline to the Tanzanian coast, and supporting infrastructure for exploration and production activities. Uganda discovered substantial oil reserves in the Albertine Graben region in western Uganda in 2006. The country has since been working to develop its oil industry, with production expected to commence in 2025. The government’s doubling of the oil industry budget reflects the significant potential for the industry to transform Uganda’s economy. It is estimated that oil production could generate up to $15 billion in annual revenue for the country. However, the government has also been criticized for its handling of the oil industry. Critics have raised concerns about environmental impacts, corruption, and the lack of transparency in the award of oil contracts. “The government must ensure that the benefits of oil production are shared equitably among all Ugandans and that the environmental impacts are minimized,” said environmental activist Emmanuel Kissa. Despite these concerns, the Ugandan government remains optimistic about the potential of its oil industry. The increased budget allocation is a clear indication of its commitment to developing the industry and maximizing its benefits for the country.

Uganda has more than doubled its annual budget for the oil and gas industry as it nears the start of production, scheduled for the next financial year.

The government allocated 920.9 billion shillings ($246 million) to the sector for the year to June 2025, Finance Minister Matia Kasaija said in a speech in the capital Kampala on Thursday. This compares to Sh447 billion in the previous budget.

The funding will focus on the 900-mile East African Crude Oil Pipeline (EACOP), which will transport crude oil from the fields of landlocked Uganda to the port of Tanga in Tanzania.

TotalEnergies SE is leading the development of the country’s oil fields and the $5 billion pipeline, along with partners Uganda National Oil Corp., Tanzania Petroleum Development Corp. and Cnooc Ltd. of China.

The money will also be funneled into a planned 60,000-barrel-per-day refinery. Uganda said in January it had chosen Dubai-based Alpha MBM Investments to lead the development of the $4 billion plant, which will supply local and regional markets. The government aims to launch in 2028.

Funds will also be allocated to a petroleum geoscience laboratory and the acquisition of thousands of liquefied petroleum gas cylinders for clean cooking, Kasaija said.

The country has around 6.5 billion barrels of oil resources and up to 1.4 billion barrels of recoverable oil.

++++++++++++++++++++++++
++++++++++++++++++++++++++++++++

Generated by readers, the comments contained herein do not reflect the views or opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be deleted. ++++++++++++++++++++++++++++++++

++++++++++++++++++++++++

++++++++++++++++++++++++
++++++++++++++++++++++++++++

MORE FROM THIS AUTHOR

++++++++++++++++++++++++++++++++++++++++
++++++++++++++++++++++++++++++++++++++++++++Bloomberg
++++++++++++++++++++++++++++++++++++++++++++
++++++++++++++++++++++++++++++++++++++++

++++++++++++++++++++++++++++++++++++++++
++++++++++++++++++++++++++++++++++++++++++++
++++++++++++++++++++++++++++++++++++++++ ++++++++++++++++++++++++++++++++++++

++++++++++++++++++++++++

Uganda has doubled its oil industry budget to $2.5 billion as the country prepares to start producing crude in 2025. The revised budget, which was approved by parliament last week, will cover the costs of developing oil fields, building a refinery, and constructing a pipeline to export oil to international markets. Uganda discovered commercially viable oil reserves in 2006, but production has been delayed by a number of factors, including disputes over the terms of production agreements and the need to build the necessary infrastructure. The government is now confident that production can begin in 2025, and the increased budget is a sign of its commitment to developing the oil industry. The oil industry is expected to have a major impact on the Ugandan economy, which is currently heavily dependent on agriculture. The government hopes that oil revenues will help to fund infrastructure projects, social programs, and economic development. However, there are also concerns about the environmental impact of oil production, and the government has pledged to take steps to minimize the damage to the environment. The oil industry is a complex and challenging one, but Uganda is determined to develop its oil resources in a way that benefits the country and its people.