Page 12 - AfrOil Week 20 2021

AfrOil PERFORMANCE AfrOil

Museveni sees oil production giving

a boost to Ugandan economic growth

UGANDA UGANDAN President Yoweri Museveni has track to begin developing its oil resources in
said he expects the country’s economic growth 2025. The French major is a shareholder in both
to speed up once commercial oil development of the fields that are slated to begin commer-
begins in the Lake Albert area. cial production in that year. It is the operator of
Citing projections made by the Ministry of Blocks 1 and 2, which are home to the Tilenga
Finance, Planning and Economic Development, field, while China National Offshore Oil Corp.
Museveni said that oil production was expected (CNOOC) operates Blocks 1A and 3A, which
to push Ugandan economic growth rates up to house Kingfisher.
9-10% per annum. This marks an increase on Together, Kingfisher and Tilenga will even-
the current rate of around 6% per year, he said tually see production peak at 260,000 barrels
after being sworn in for a sixth term as president. per day. Total and CNOOC will send some of
“With the activation of the oil sector, which their production to a 60,000 bpd refinery, as yet
has been dormant ever since 2006, when we unbuilt, that will turn out petroleum products
discovered the petroleum,” he was quoted as for the Ugandan market. However, they intend
saying by The Monitor. “And if you add the to export most of these volumes, or 216,000 bpd,
expected average growth rate of 6% per annum via the East Africa Crude Oil Pipeline (EACOP).
post COVID-19, the combination will expand The two companies have already teamed up with
the [GDP] to an estimated $67bn by 2026 using Uganda National Oil Co. (UNOC) and Tanzania
the exchange rate method and $193bn using the Petroleum Development Corp. (TPDC) to form
PPP method, meaning that the economy will be the consortium that will build EACOP along a
growing at the rate of between 9-10% in the ini- 1,445-km route from Hoima, a town near Lake
tial years of oil production.” Albert, to Tanga, a port on the Indian Ocean
According to France’s Total, Uganda is on coast. ™

Sudan pins hopes on deal with ADNOC

for future petroleum product supplies

SUDAN ABU Dhabi National Oil Co. (ADNOC) of the Omar el-Bashir, the country’s long-time presi-
UAE has reportedly agreed to ensure that Sudan dent. Shortages of cooking gas (LPG) and motor
has an adequate supply of petroleum products. fuel are common and have sparked a number of
Khalid Omer Yousif, Sudan’s Minister of protests and street demonstrations. Power out-
Cabinet Affairs, told Reuters last week that ages are also widespread, largely because the
ADNOC had offered to sign a contract with country does not have enough residual fuel oil to
Khartoum on very favourable terms. He did keep thermal power plants (TPPs) in operation.
not divulge any details of the deal but stressed Supply problems have become increasingly
that the parties were in talks on an arrangement common since 2011. In that year, Khartoum lost
that would allow Sudan’s government to cover control of the fields that had accounted for most
domestic fuel demand in full. of the country’s crude output as a result of South
According to Yousif, the two sides intend to Sudan gaining independence. It has managed to
discuss the matter further. He said a delegation make arrangements with Juba for the continua-
from the Sudanese Energy Ministry was due to tion of oil shipments through the existing pipe-
travel to the UAE in about a week to settle the lines that lead to Sudan’s refineries and export
details of a supply agreement. terminals on the Red Sea, but deliveries have
As of press time ADNOC had not com- become less reliable. Additionally, the condition
mented on the matter. of the pipeline network has deteriorated, partly
Khartoum has been struggling to meet fuel because Sudanese authorities are not earning as
demand since mid-2019, when a transitional much foreign currency from oil production and
government took power following the ouster of exports. ™

P12 www. NEWSBASE .com Week 20 19•May•2021