In its Economic Update report, the bank says “the sharp decline in world oil prices resulting from the COVID-19 crisis could delay oil sector investments in the medium term and oil production beyond 2025”
Mugalu further observes that when such projects are put up in an area, there is a given radius where certain activities are impermissible. He however, says although the ministry has already developed the Kampala Oil Terminal project master plan, the district has no clue.
Finance Minister, Matia Kasaija this afternoon tabled the budget before Parliament, seeking approval to withdraw the funds from the Petroleum Fund and allocate it to Uganda National Roads Authority for the construction of roads in the Bunyoro oil production area.
Of the ten applications, only one production license has been issued, in September 2013, and that is for the Kingfisher Discovery currently being operated by CNOOC. Uganda is estimated to have discoveries estimated at 3.5 billion barrels with potential extraction being 1.2 billion barrels.
Aventino Bakunda, a Senior Fisheries Officer in the ministry of Agriculture, Animal Industry and Fisheries says that they have been outpaced by the activities in the oil industry yet he acknowledges that the industry is likely to have negative impact on fishing.
The Acholi parliamentary Group, a body that unites members of Parliament from the seven districts in Acholi sub region has named a representative to oversee the developments related to the oil, which was discovered in the region and is due for production.