The government has been banking on the Joint Venture Partners, Tullow, China National Offshore Oil Corporation-CNOOC and Total to make a Final Investment Decision with regard to the project, to unlock value in the countrys oil and gas sector.
Hans Peter Christophersen, the Trade and Energy Counselor, at The Royal Norwegian Embassy in Kampala says that greedy individuals have inflated land costs and demanded huge compensation rates in the Albertine Graben making it difficult for planned projects to take off.
Tanzania has 57 trillion cubic feet tcf of undeveloped and proven natural gas reserves that can be turned in liquefied natural gas LNG.It is emerging that resource can be used by Uganda to enable flow of the crude oil from Hoima to Tanga and as well be used to develop Ugandas iron ore.
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.
Sources that attended the meeting say land owners have finally agreed to be paid 3.5 million shillings for an acre of land after hours of haggling. It appears, however, that political leaders from Buliisa had wanted the rates not below 20 million shillings.
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.
Several inward investors providing services to oil and gas sector are concerned about national participation and local content regulations being introduced by a private members bill soon to be tabled in Parliament.
The letter of notification sent early last week seeks governments permission to allow the planned sale of Tullows assets to proceed. Tullow Oil, in January this year, agreed to transfer 21.57 percent of its 33.33 percent interests in Lake Albert Development Project covering exploration areas 1, 1A, 2 and 3A to Total for a total consideration of USD 900 million 3.27 trillion Shillings.
Tullow Oil, in January this year, agreed to transfer 21.57 percent of its 33.33 percent interests in Lake Albert Development Project covering exploration areas 1, 1A, 2 and 3A to Total for a total consideration of USD 900 million 3.27 trillion Shillings.
Dr Callist Tindimugaya, the Commissioner, Water Resources Planning and Regulation says the study expected to begin before the end of the year, will also quantify the amount of water needed to have oil out of the ground.
.Oil industry players and environmental activists say failure to put in place a new environmental regulatory regime has exposed the countrys environment to danger. Reports indicate that NEMA is still stuck with a huge stockpile of mud cuttings from the drilling of oil which cannot be disposed off in the absence of disposal guidelines.
The absence of global guidelines and manuals for auditing the oil, gas and minerals have been singled out as one of the challenges for national audit offices also known as Supreme Audit Institutions to track costs and expenditures in the industry.