Uganda has 6.5 billion barrels of proven oil reserves. At the peak of the oil production, an estimated 167,000 jobs will be created, including specialized, skilled, semi-skilled, unskilled, indirect and induced jobs.
The company, one of the Joint Venture Partners in Ugandas Oil and Gas sector says it expects to have generated over USD 500 million 1.8 trillion Shillings of free cash flow, significantly exceeding the forecast at the start of the year.
When Uganda confirmed existence of commercially viable petroleum reserves in the Albertine Graben in 2006, the biggest question whether oil reserves would become a blessing or a curse to the country. Hoima, once a sleepy town and district has since the discovery of oil and gas been bustling with activity. The momentum has been higher this year with plans to construct an oil refinery and an international airport ahead of first oil by 2020.
The announcement came just few hours after an international maritime tribunal backed cleared Ghana of allegations that it was drilling for oil within Ivory Coast boundary cutting through lucrative offshore oil fields.
The two financial institutions are expected to help government of Uganda to raise over 12.6 trillion Shillings 3.55 Billion required for financing the 1,445km pipeline by the second half of next year. The pipeline will connect Hoima oilfields to the port of Tanga in Tanzania.
The Petroleum Directorate says it is undertaking fresh due diligence on Oranto Petroleum Limited before the Nigerian oil company can be granted an exploration license. Robert Kasande, from the the Directorate Of Petroleum, says the government decided to do more due diligence on Oranto Petroleum Limited before it can be granted exploration licenses and production sharing agreements.
The committee members noted that during the hearing several Civil Society Organizations-CSOs hinted on the settlement between Tullow oil and government in which, the oil firm was allowed to pay USD 250M as a capital gains tax instead of the previous assessment of USD 407M.
The appeal comes barely two months after oil exploration giants Total, CNOOC and Tullow developed Ugandas Albertine Graben land acquisition and resettlement framework bringing the country another step closer to exploiting its vast oil reserves.
International Oil Companies spent over 3.6 billion shillings 1Million for exploration data without approval from government as required by the production sharing agreements. The money is a recoverable cost as per the agreement between government and Oil Companies.The 2016 Auditor Generals report says the failure to monitor and track costs may according to Auditor General result into International Oil Companies incurring costs which may not be approved as recoverable, which may lead to arbitration.