$8B to be invested in Uganda in the next 3 years

Uganda expects up to $20 billion in investments as a result of the development phase in the oil and gas industry including $8 billion in the next three years as it races to complete its crude oil pipeline by 2020 according to the CEO of the Association of Uganda Oil and Gas Service Providers Emmanuel Mugarura.

The projects which include the construction of a 24 inch 1445 kilometer crude oil pipeline, a refinery in Hoima among other facilities is expected to kick start once the final investment decision is reached by the end of 2017.

Already the Front End Engineering Design (FEED) has commenced with the launch that took place at the Ministry of Energy and Mineral Development in January 2017 and is expected to be complete by the end of 2017 at the cost of $11 million. Gulf Integrated Engineering was awarded the project.

According to Mugarura as per the initial study the six meter deep heated pipeline with 10 pumping stations is expected to cost up to $4.5 billion with Total E&P having agreed to finance the project while the refinery to be built in three phases is expected to cost $3.5 billion. Just yesterday Total E&P advertised in Uganda newspapers asking for service providers during the construction of the pipeline. CNOOC has also advertised for contractors for the provision of houses as resettlement commences.

Other facilities include an international airport in Kabaale, a highway, Power Transmission and ICT infrastructure cable systems among others all part of the Uganda Oil and Gas park whose master plan is expected to be complete by June 2017.

A huge chunk of the costs are also expected to go to logistics with some 2000 trucks expected to be used to deliver 800,000 tonnes of equipment through Kenya and Tanzania with supporting industries such as catering, security, health among others expected to reap from the projects. In total the project is expected to employ 16000 employees.

Emmanuel Mugarura was speaking during at the ongoing 6th East Africa Oil and Gas week 2017.

Author: OilNews

International award winning journalist with a nose for news in the extractives industry. Contact: +254724684368