Uganda’s oil and gas sector is ripe for investment, with several projects underway that promise significant returns.
The Uganda National Oil Company (UNOC) has been actively courting investors, showcasing the country’s favorable business environment and highlighting the laws, regulations, and policies that facilitate investment, with the latest campaign being at the Sub Saharan Africa International Petroleum Exhibition and Conference, held in Lagos, Nigeria, recently.
Proscovia Nabbanja, the Chief Executive Officer, UNOC, attended the Conference together with other panelists from National Oil Companies and used the opportunity to showcase UNOC’s projects.
During her address at the conference, Nabbanja highlighted the laws, regulations and policies facilitating investment in Uganda, urging investors to consider investing in Uganda’s oil and gas sector because of the favourable business environment the country offers.
Key Projects in Uganda’s Oil and Gas Sector
Some of Uganda’s key projects in the oil and gas that Nabbanja showcased to potential at the conference investors include;
Located in the Lake Albert region, this project is operated by TotalEnergies and is expected to produce 230,000 barrels of oil per day at peak production. The project involves the development of six fields and the drilling of around 400 wells from 31 locations.
Also located in the Lake Albert region, this project is operated by CNOOC and is expected to produce 230,000 barrels of oil per day at peak production.
East African Crude Oil Pipeline (EACOP)
This pipeline will transport crude oil from Uganda to Tanzania, with a total investment of approximately USD 10 billion.
This project aims to meet Uganda’s petroleum products needs, which are currently estimated at 36,000 barrels per day and growing at an annual rate of 7%.
Why Invest in Uganda’s Oil and Gas Sector?
Uganda offers all potential investors an opportunity to invest their money in the country’s oil and gas sector with a high Rate of Return on Interest (ROI) and according to Nabbanja, here is why;
Favorable Business Environment
Uganda offers a favorable business environment, with laws, regulations, and policies in place to facilitate investment.
Significant Returns
The oil and gas sector in Uganda promises significant returns, with estimated revenues of USD70 billion over the life of the projects.
Growing Demand
Uganda’s petroleum products needs are growing at an annual rate of 7%, providing a ready market for investors.
Diversification Opportunities
The oil and gas sector in Uganda offers diversification opportunities, with potential for investment in refining, petrochemicals, and other related industries.
Key Sectoral Projections
It is important to note that Uganda’s oil and gas assets are valued at USD116 billion (gross). The sector, which currently employs over 10,111 Ugandans, is expected to earn USD69.7 billion over the life of the projects, with an average annual income of USD2.8 billion.