By UNOC Corporate Affairs
Uganda National Oil Company Limited (UNOC) has met with Members of Parliament (MPs) on the National Economy Committee to update them on the development of Oil & Gas projects in Uganda.
The UNOC Chief Executive Officer, Ms. Proscovia Nabbanja, who led the Executive Committee, informed the legislators about the institution’s mandate across the petroleum value chain, including investigating and proposing new upstream, midstream and downstream ventures.
She highlighted UNOC’s role across the three segments of the petroleum value chain;
Upstream: UNOC is concluding the back-in process to enable it to manage the 15% state participation and other Government commercial interests in the Kingfisher Development Area (Hoima) and Tilenga Development Projects (Buliisa & Nwoya) on behalf of the State.
UNOC plans to embark on exploration and new ventures to optimise production sustainability and has submitted an application for an Exploration Licence.
Midstream: UNOC will manage the state participation in both the East African Crude Oil Pipeline (EACOP) and the refinery. UNOC will hold 15% interest in EACOP and 40% in the refinery. The said participating interests shall be held through UNOC’s wholly-owned subsidiaries: National Pipeline Company (NPC) Uganda Limited and Uganda Refinery Holding Company Limited (URHC) respectively.
UNOC will also manage the Kabaale Industrial Park, which will sit on the 29.59 square kilometer piece of land acquired in Hoima. It will, among others, host the refinery, Petro-chemical industries, and an international airport.
Downstream: UNOC is focusing on two projects: the Kampala Storage Terminal (KST), and the management of Jinja Storage Terminal (JST). UNOC intends to develop, build and operate the multi-user petroleum refined products storage terminal at Namwambula village, near Kampala through a joint venture.
UNOC has been managing the JST since May 2017 and plans to include use of a barge on Lake Victoria to ease transportation of petroleum products to the terminal.
Committee chairperson, Hon. Syda Bbumba, thanked UNOC for the informative sessions and pledged to support UNOC’s agenda.
She urged UNOC to “focus on the journey to first oil and the benefits to the country”, advising the institution to pay special attention to local content when evaluating contracts for service provision. Local content refers to participation of indigenous persons and companies in provision of services and goods to the sector.
Formerly the Minister of Energy and Mineral Development, Hon. Bbumba requested UNOC to support Uganda Petroleum Institute Kigumba (UPIK) in providing certifications in Uganda. UPIK is among the institutions offering training of skills needed in the oil and gas sector. She appealed for establishment of centers of excellence regarding oil and gas.
UNOC Chief Financial Officer, Mr. Emmanuel Mugagga, informed the MPs that the total capital requirements for UNOC to invest and participate in the sector is USD $845 million and is needed over a period of five years.
He further indicated that the projects UNOC intends to invest in and that Cabinet has approved are profitable and will greatly benefit the country.
He asked for their support in ensuring that UNOC raises the required capital and invests in the projects stated.
The January 31st, 2020 one-day workshop was held at Kampala Serena Hotel.