Belgians Pick Interest in Uganda's Energy Sector

3605 Views Kampala, Uganda

In short
Belgiums interest in Ugandas energy sector is picking with a number of its investors looking into the possibility of taking up lucrative jobs in the oil and gas.

Belgium's interest in Uganda's energy sector is picking with a number of its investors looking into the possibility of taking up lucrative jobs in the oil and gas.

A number of investors led by Ivan Korsak, the Trade Commissioner for the Royal Belgian Embassy in Uganda today visited the energy Ministry headquarters in Kampala on fact-finding mission.
The visiting team included staff from Veldeman Group, a Universal Fabric structures supplier providing temporary, permanent and semi-permanent structures for a wide array of industries and events.
Bolloré Logistics, a global leader in international transport & logistics was part of the 12 companies attending a briefing at the Ministry of Energy.
The Ministry officials led by James Banabe, the director Energy Resources and other officials from the Directorate of Energy, Petroleum and Minerals presented the investment opportunities in the energy sector which included the investments in Oil and gas exploration and development, the East African Crude Oil Pipeline, the Refinery and the airport among others.
Banabe said the Belgians also have the opportunity to invest in off-grid electrification in the country. Uganda is currently described by the World Bank as the hottest inland exploration frontier in the world and the country to watch in the oil and gas space. This is due to the commercial discovery of an estimated 6.5 billion barrels of oil, of which 1.4 billion barrels are recoverable.

With the first oil expected in 2020, a number of foreign investors are eyeing some of the lucrative jobs that the industry will offer.

The Belgian Business Delegation composed of 43 companies is the second to visit Uganda this month to explore opportunities in oil and gas after the UK delegation.

Despite the slump in global oil prices, the start of commercial oil production in Uganda in 2018 offers long-term investment prospects.

In 2006, Uganda confirmed discovery of crude oil reserves of up to 6.5 billion barrels in the Lake Albert basin in the West along its border with the Democratic Republic of Congo.

With commercial production in full swing, the country could earn up to three billion US dollars in revenue from exports of up to 60,000 barrels of oil per day.

Some of the crude will be used to produce power locally, while the rest will be processed at a new 2.5-billion-dollar refinery, and routed by pipeline through the Tanzanian port of Tanga for export.

Earnest Rubondo, the Executive Director, Petroleum Authority of Uganda, says the next phase of developments offers Ugandans and foreigners immense opportunities.

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Apart from the unexplored areas, Dr. Rubondo says the development of the sector towards first oil and after is likely to be exciting to local and foreign investors.

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Some analysts say there is going to be a lot of growth in the sectors around oil and gas. The consumer and transport sectors are expected to triple  during this period.