KAMPALA, UGANDA.
Uganda’s infant yet multi-billion oil sector has for the past eight years been much publicized. At the start, there was overwhelming positive vibe about the sector especially the potential to transform the sector. However, that was not always the case. There were allegations of bribery against some senior government officials. Additionally, the low oil prices and delayed approval of production licenses brought the reality back to Uganda. More so, Uganda had numerous court battles in the country and London against oil companies Tullow and Heritage over non-payment of Capital Gains Tax (CGT).
Uganda has also had a series of false calls especially on the projected year for oil production. The current year, which almost reads like an obsession, is 2020. Even that appears to be too ambitious considering the infrastructure need for production to start. Companies are yet to make Final Investment Decisions.
To date, a total of 9 major oil production licenses have been issued to the Total, Tullow and CNOOC joint venture.
According to different key stakeholders, the 2020 dream is alive and achievable. Early this year, Energy Minister, Irene Muloni told the media that “companies are expected to work towards reaching a final investment decision within 18 months after issuance of the production licenses and produce first oil in the year 2020.