Page 12 - AfrOil Week 25 2022

AfrOil POLICY AfrOil

Uganda earmarks $231mn in 2022/23

budget for oil sector development

UGANDA THE Ugandan government has set aside the country’s oil industry. This FID provides for
UGX872bn ($231mn) in the 2022/23 budget the partners to spend more than $10bn on the
to fund oil-related activities as the country pre- development of the oilfields and on the con-
pares for the start of commercial production at struction of the East African Crude Oil Pipeline
the Kingfisher and Tilenga fields in 2025. (EACOP). The latter will run for some 1,443km
In presenting the 2022/23 budget, Uganda’s from Hoima, a town near Lake Albert in west-
Finance Minister Matia Kasaja said that as the ern Uganda, a landlocked country, to the port of
government upholds its commitments to the Tanga in neighbouring Tanzania.
project, the funds will be distributed among the Tilenga is the main upstream component of
relevant government agencies. the $10bn LADP initiative, which is designed to
Out of the UGX872bn in total funding, at monetise Uganda’s crude oil resources. TotalEn-
least UGX720bn will be used for oil project ergies aims to launch production at the fields in
financing, while the Petroleum Authority of 2025 and will eventually see yields top 200,000
Uganda (PAU), the national oil regulator, and barrels per day (bpd).
the Ministry of Energy will receive UGX64bn EACOP, meanwhile, is the midstream com-
and UGX87.3bn, respectively. ponent of LADP. The pipeline will carry more
Part of the funding will go to state-owned than 200,000 bpd of crude from the Kingfisher
Uganda National Oil Co. (UNOC), which will and Tilenga fields to Tanga and on to the world
play a role in commercialising the country’s market. ™
crude resources, Kasaja said. “The capacity of the
Uganda National Oil Company to invest in oil
and gas development has also been enhanced,”
he was quoted as saying by Monitor.
He also stressed that Kampala was commit-
ted to moving forward with oil development in
an optimal manner. “While there have been neg-
ative campaigns against the development of the
crude oil pipeline, the government will develop
the country’s oil and gas resources in a responsi-
ble and sustainable manner for the benefit of all
Ugandans,” he commented.
In early February, Uganda, China National
Offshore Oil Corp. (CNOOC) and France’s
TotalEnergies made a final investment decision
(FID) on the Lake Albert Development Project
(LADP), taking a major step towards developing CNOOC is the operator of the Kingfisher fields near Lake Albert (Image: PAU)

Kenya to adjust refined fuel

prices to phase out subsidies

KENYA KENYA intends to phase out subsidies for education, among others.
`petroleum products to create fiscal space for Kenya’s government has allocated more than
the government to support targeted spending KES100bn ($851.8 mn) in Fiscal Years 2021/22
on productive sectors. and 2022/23 to subsidise the price of gasoline,
The National Treasury intends to support diesel and kerosene to cushion consumers from
targeted public spending on productive sectors high international costs. The fuel subsidy pro-
such as fertiliser subsidies, universal health cov- gramme started in October 2021. Elimination
erage and subsidised primary and secondary of subsidies will begin in 2023/24.

P12 www. NEWSBASE .com Week 25 22•June•2022