Uganda has said it is only taking the necessary precautionary measures to get out the best from the Uganda’s oil industry but not intentionally delaying production as alleged by Tullow oil. .
The government is not intentionally delaying production of oil, but rather taking necessary precautionary measures to get the best out of industry.
According to the Ministry’s of Energy and mineral Development through the Commissioner of Petroleum Exploration and Production department Ernest Rubondo Uganda’s industry is way different from that of other oil producing countries.
“It’s not true that Uganda is slow in processing oil production. The circumstance under which we discovered our oil and gas are different if you compare to other countries like Ghana, Norway or Mexico,” Rubundo said.
Rubondo who was speaking at an event organized by Uganda Chamber of Mines and Petroleum and Global Pacific Partners says the finding of oil in the landlocked country puts it in a precarious situation as compared other producers by the ocean.
“In Uganda, oil was discovered in the middle of the continent not in ocean like other countries producing oil and gas. This means Uganda needs to put the right infrastructures in place. When this is put in place the time will be shorter,” he said.
Uganda adds there exist there are different commercial interest between the government and the oil companies even as the government takes time to understand the sector.
“They (government) could have been quicker, they have their interest, but it will happen in due course. They must do what they must do to maximize benefits from the industry. An early production would be good for the country,” said Duncan Clarke an oil expert.
Tullow Oil is a presentation with investors in February said Kenya could produce oil before Uganda due to delays brought by the government with other reports even indicating the company was considering selling its Ugandan stake.
They were speaking during the launch of a book authored by Duncan Clarke and Babette van Gessel called ‘Three Decades in the Long Grass: The Story of Global Pacific and Partners’.