Uganda's Oil Can Transform Economy If Managed Well - Museveni
President Museveni has said Uganda's petroleum resources have the potential to significantly transform the country's economy if they are managed strategically and linked to industrial development.
The President made the remarks during a visit to the Kingfisher Oilfield in Buhuka, Kikuube District, where the Kingfisher Central Processing Facility (CPF) has reached mechanical completion, marking a major milestone as Uganda moves closer to its first commercial oil production.
During the visit, President Museveni unveiled "Pearl Sweet" as the official name of Uganda's crude oil.
"We are here to celebrate and give this baby (oil) a name. These people have told me to name this baby Pearl Sweet Petroleum. We call it sweet because it does not have sulphur. When it has sulphur, it is more expensive to remove the sulphur. This one either has little or no sulphur," President Museveni said.
He said the development of Uganda's petroleum industry should go beyond the extraction and export of crude oil, arguing that the resource should be used to stimulate industrialisation, expand productive capacity and create long-term economic value.
"The petroleum industry would push us very far," the President said, pointing to the planned refinery and its potential to produce fuel for vehicles, aviation fuel and other petroleum products.
"So, what is happening here is not a joke. It will have a lot of implications," he added.
President Museveni said Uganda should use its oil resources as a catalyst for building industries and strengthening the country's productive sectors rather than treating petroleum simply as an export commodity.
He also pointed to the remaining exploration potential in the Lake Albert region, saying only about 40 per cent of the lake has so far been explored.
"The 6.5 billion barrels of oil that were confirmed only cover 40 per cent of Lake Albert. We still have 60 per cent to explore," he said.
The President thanked Uganda's petroleum sector partners, particularly TotalEnergies and CNOOC, for their contribution to the development of the industry. He commended CNOOC for the pace of work at Kingfisher and urged other partners to accelerate their activities.
"I want to thank CNOOC here because they have moved very fast. I want the others to also work very fast," he said.
President Museveni warned against using oil revenues to finance consumption and luxury imports, saying income from an exhaustible resource should instead be invested in assets that will benefit future generations.
"The money will be used to do durable things -- to build power stations, build the railway and other things which will be there for the grandchildren," he said.
He said this approach would enable Uganda to convert its finite petroleum resources into long-term infrastructure and productive capacity.
The President also reiterated that Uganda would not flare associated gas produced from the Kingfisher field.
Instead, the gas will be used to generate electricity and produce liquefied petroleum gas (LPG) for cooking.
"Here, we said no to flaring gas. We shall be using the gas to generate electricity, up to 80 megawatts at Kingfisher alone," he said.
He said the planned 80-megawatt generation capacity would be equivalent to about half of the output of Nalubaale Power Station and could generate approximately $30 million annually for the project.
"The other gas will be condensed and turned into liquefied petroleum gas for cooking," President Museveni added.
The Minister of Energy and Mineral Development, Dr. Monica Musenero, said the name "Pearl Sweet" reflects both the characteristics of Uganda's crude and the country's identity as the Pearl of Africa.
She explained that "Sweet" refers to the crude's very low sulphur content, which makes it cheaper to refine, while "Pearl" reflects Uganda's long-standing identity as the Pearl of Africa.
"For many years, petroleum in Uganda was an aspiration; something discovered, studied, debated and planned for. Today, that resource is being translated into productive assets, infrastructure, skills, businesses and, very soon, commercial production," Dr. Musenero said.
She described the milestone as a testament to President Museveni's long-term vision and persistence in developing Uganda's petroleum sector.
The Permanent Secretary in the Ministry of Energy and Mineral Development, Eng. Pauline Irene Batebe, said the Kingfisher project was about 80 per cent complete, with first-oil readiness at 98 per cent and commissioning tests underway.
She said first oil was expected by the end of September.
"Its Central Processing Facility has reached mechanical completion and is built to handle 40,000 barrels a day," Eng. Batebe said.
The crude produced at Kingfisher is waxy and low in sulphur and solidifies at normal temperatures, requiring it to be kept hot during transportation.
It will be transported to Tanzania's Tanga Port through the 1,443-kilometre East African Crude Oil Pipeline, which will be heated along its entire length. The pipeline was 92.7 per cent complete, according to Batebe.
CNOOC Uganda Limited President Liu Xiangdong said the progress at Kingfisher was the result of years of investment, partnership and commitment, including support from the Ugandan Government.
"Your Excellency, when we look around Kingfisher today, we can see how far this project has come. What we see here is the result of many years of hard work, partnership and commitment. It is also a reflection of the support and guidance we have received from the Government of Uganda," Xiangdong said.
He said CNOOC's objective was to develop the resource while protecting the environment and working closely with surrounding communities.
"CNOOC Uganda Limited remains committed to working with the Government of Uganda, its partners and the communities around Kingfisher to deliver a safe, responsible and sustainable development that creates lasting value for Uganda," he said.
Prime Minister Robinah Nabbanja said Uganda's oil programme had contributed to significant development in the Bunyoro sub-region, including the construction of Kabalega International Airport, Kabalega Industrial Park, more than 500 kilometres of tarmacked roads and upgraded health facilities.
She described President Museveni's visit to Kingfisher as an opportunity to assess progress on a vision he initiated decades ago, recalling his decision after coming to power in 1986 to send young Ugandans abroad to acquire expertise in the petroleum sector.
The Chinese Ambassador to Uganda, Wu Guangrong, reaffirmed China's commitment to strengthening bilateral cooperation with Uganda, particularly in oil and gas, trade, infrastructure, investment and other areas of economic development.
He said cooperation should extend beyond resource extraction to include skills development, employment, local content and industrialisation.
The Kingfisher Development Area comprises the Central Processing Facility, four well pads, camps, a supply base and a 47-kilometre feeder pipeline.
Of the planned 31 wells, 22 are ready, with some extending more than seven kilometres underground. The wells are at different stages of completion and perforation, while pumping and flowback activities are also progressing.
The project is designed to produce approximately 40,000 barrels of oil per day.
At the CPF, crude oil, water, gas and waste will be separated. Water will be reinjected into the reservoir, waste will be transferred for treatment, while associated gas will be used for power generation and LPG production.
The processed crude will then flow through the feeder pipeline to Pump Station 1, where it will connect to the 1,443-kilometre East African Crude Oil Pipeline for transportation to Tanga Port in Tanzania.
With the CPF now mechanically complete and commissioning activities underway, Kingfisher is entering the final stages ahead of Uganda's long-awaited first oil production.
For Uganda, the significance of the milestone extends beyond the start of crude production. The central challenge, as President Museveni emphasised, will be turning petroleum wealth into industries, infrastructure, energy and productive assets capable of supporting the economy long after the country's oil reserves are depleted.
Read the original article on Nile Post.