Oil and Gas Sector


Tullow Oil

Credit: Photo/Newvision

 

  Size and Structure

The upstream oil potential capacity defined in terms of reserves is currently estimated at 3.5 billion Barrels of Oil as of June 2012, with most of it concentrated in the Albertine Graben. The oil reserves are likely to increase since exploration is on-going.


Structure

Current Structure Of Players In The Sector Upstream:

Government


The sector is regulated by the Petroleum Production and Exploration Department under the Ministry of Energy and Mineral Development.

Exploration Companies


The major players: Tullow Uganda Operations Limited, TOTAL E&P and China National Oil Offshore Corporation (CNOOC) are partners in developing discovered reserves. The developments open gates for possible US $10billion investments in the sector.

Midstream: (Transportation and refining)


The government has plans of building a refinery in a move aimed at adding value to the crude oil, boosting employment for the locals and creating opportunities for local entrepreneurs to provide services.

Downstream: Distribution and marketing


Currently, the nation meets all its petroleum needs with imports now standing at 847,603 cubic meters, and estimated at US$ 320 million per annum. This constitutes about 8 per cent of total national imports and represents slightly above 20 per cent of total export earnings.

Petroleum products include Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Bulk Illuminating Kerosene (BIK), Aviation Fuel, Fuel Oil (FO) and Liquefied Petroleum Gas (LPG) and other products including Lubricants and Bitumen are imported into the country. The average annual growth of petroleum consumption stands at about 5 per cent of GDP.

Map of Oil Discoveries In Uganda


  Source: Uganda Investment Authority

  Demand Drivers and Resource Based Factors

 

                Demand Drivers

  • Economic growth in Uganda
  • Global economic growth
  • Increased consumer incomes and affluence
  • Purchase and use of individual and family cars
  • Population growth
  • Education and affluence

 

            Resource Base Factors

  • The discovery of oil paves way for the development of commercial oil production of Uganda.
  • Uganda and the region import all its oil and petroleum products. Oil is a major economic driver.
  • Population growth and urbanization.
  • The need to supplement its own hydro-electric power.
  • There is need for petroleum by-products like tar/bitumen road for construction, fertilizers for the agricultural sector, insecticides, Jet A1 for aviation and many others.
  • Transport and Distribution

  Key Trends

Projections

Table of Oil Production Projections

  2015 2020 2025 2030 2035 2040
Barrels per day(“000’s) 200 250 300 350 300 280
Barrels per year - 365 days (‘000’s) 73,000 91,250 109,500 127,750 109,500 102,200
Oil value per day(‘000’s)
US 80 dollars per barrel(‘000’s) 16,000 20,000 24,000 25,000 24,000 22,400
US 60 dollars per barrel(‘000’s) 12,000 15,000 18,000 21,000 18,000 16,800
0il value per year (‘000’s)
At US 80 dollars per barrel(‘000’s) 5,840,000 7,300,000 8,760,000 10,220,000 8,760,000 8,176,000
At US 60 dollars per barrel(‘000’s) 4,380,000 5,475,000 6,570,000 7,665,000 6,570,000 6,132,000
Government Revenue per day
US 80 dollars per barrel (‘000’s) 6,400 8,000 9,600 11,200 9,600 8,900
US 60 dollars per barrel (‘000’s) 4,800 6,000 7,200 8,400 7,200 6,720
Government revenue per year
At US 80 dollars per barrel (‘000’s) 2,336,000 2,920,000 3,504,000 4,088,000 3,504,000 3,270,400
At US 60 dollars per barrel (‘000’s) 1752000 2,190,000 2,628,000 3,066,000 2,628,000 2,175,800

Source: Economic Policy Research Center (EPRC)

  Investment Opportunities

The Diagram below Summarises the investment opportunities in the Oil and Gas sector.

Potential Investment/Business Opportunities In The Oil And Gas Sector

Source: Tullow Uganda

Specific Sector Licensing Requirements
The oil and Gas sector is highly regulated. Licensing requirements can be obtained from the Department of Petroleum Exploration and Production. (Refer to Appendix 3)

Useful Addresses and Contacts

 

Petroleum Exploration and Production Department (PEPD),
Plot 21-29 Johnston Road,
P. O. Box 9,Entebbe.
T:+256 414 320714
F:+256 414 320437
communications@petroleum.go.ug
Ministry of Energy and Mineral Development
Plot 29/33 Kampala Road
Amber House P.O. Box 7270 Kampala Tel + 256 414 232987 www.energyandminerals.go.ug
Uganda Chamber of Mines & Petroleum
3rd Floor Amber House
Plot 29/33 Kampala Road
P.O. Box 71797 Kampala
info@ucmp.ug
events@ucmp.ug
www.ucmp.ug