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Uganda Back On Path To Produce First Oil By 2025

Uganda Back On Path To Produce First Oil By 2025

The Uganda National Oil Company has said the country is back on schedule to produce its first oil by 2025. Proscovia Nabanjja, the Chief Executive Officer, Uganda National Oil Company (UNOC), made this revelation.

“We are working towards all efforts between the upstream and the EACOP. We are working towards the 2025 target, we are on track,” Nabanjja said at the launch of the 90 Days of Oil and Gas Media Campaign by the Uganda Chamber of Mines and Petroleum.

She further said that the drilling has already begun. She said oil will be transported through the $3.5 billion East African Crude Oil Pipeline (EACOP) to the port of Tanga in Tanzania for export.

Apparently, the EACOP has capabilities of sending up to 246,000 barrels of crude per day to world markets by 2025.

Nabbanja said that as UNOC, they have a diverse portfolio of projects stretching from upstream, midstream, and downstream.

I just wanted to reassure you all that the sector has progressed. There has been fatigue before, but it’s now in action mode. And we encourage all Ugandans to take part. It’s not only about the direct benefits, their indirect and induced benefits, the sector is bringing $15 billion to 20 billion US dollars. We are likely to get anywhere above 50 billion within the lifetime of the projects. And that’s only assuming that the price of a barrel will be seated at about $50. you can see how much impact this industry is going to have on our economy,” Nabanjja said.

The Chief Executive Officer of Uganda Insurance Association, Jonan Kisaakye said they have benefited since the Final Investment Decision’s announcement.

“We have been able to issue three policies for the Tilenga project amounting to about $15.2 million, equal to about $2.7 million per loan, and for CNOCC, we are in the range of about $5.9 million in premiums,” he said.

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