Uganda is set to be a key focus of African Energy Week (AEW) in Cape Town this November, as its flourishing oil industry looks set to boom in the coming years.
Uganda’s government has been working hard to encourage more foreign investment recently as the country aims to develop its oil and gas industry significantly over the next decade.
“AEW 2021 has placed Uganda as a top priority in Cape Town. The country’s significant resources, political will, and active local business sector will position the country as a regional leader, warranting an increase in foreign investment and associated developments,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber.
At present, Uganda holds an estimated 6.5 billion barrels of crude oil , far less than African oil leaders Libya and Nigeria but a significant amount in terms of the regional average. This could put it in fifth place regionally for oil reserves if proven, and encourage greater development in the sector. At present, 1.4 billion of these barrels are thought to be economically recoverable. Uganda also hopes to boost its production levels to a peak of 230,000 bpd when fully operational.
In 2020, Tullow Oil, which had been investing in Ugandan oil since 2004, sold its assets to Total, for $575 million , with the French giant set to work in collaboration with China’s CNOOC to further develop the Tilenga and Kingfisher oil fields, alongside Uganda’s national oil company UNOC.
Uganda has been fast-developing the industry since Total’s takeover, commissioning the world’s longest electrically heated pipeline , at a length of 1440km and costing around $3.5 billion . The export pipeline will run from western Uganda to the Indian Ocean port of Tanga in Tanzania, building greater international links for Ugandan oil.