The ministry of finance in Uganda has allocated $56.2 million towards Oil, Gas and Mineral Development and institutional and skills development including operationalizing the National Petroleum Authority and establishment of the National Oil Company in a budget speech read yesterday.
The allocation of the funds towards the establishment of the National Oil Company comes days after the Board of Directors of the National Oil Company chaired by Emmanuel Katongole appointed Dr. Josephine Kasalamwa Wapakabulo as CEO.
The Uganda National Oil Company Limited which was registered at the end of June 2015 will carry the governments this interest for government during the exploration and development phases of the petroleum value chain and ends upon commencement of production.
The National Petroleum Authority on the other hand is in charge of licensing, regulation, supervision of exploration, harvesting, refining, marketing, and disposal of petroleum products in Uganda.
According to the ministry the commercialization of oil and gas resources is one of the key objectives of the Ugandan Government.
On the 60,000 barrel a day Oil Refinery project negotiations with the Lead Investor for the refinery are expected to be concluded by September 2016.
Already land acquisition for the Refinery Development is 97% complete and 533 acres of land have been acquired in Kyakaboga, Buseruka sub-county, Hoima district for the physical resettlement of the Project Affected Persons who opted for resettlement.
No funds were allocated to the Hoima-Tanga crude oil pipeline as it will be developed as a private investment.
Elsewhere in the region Kenya cabinet secretary for finance Henry Rotich allocated $1.2 billion to fund specific interventions in the energy sector although no breakdown was provided for the various segments.
The funding will go towards: Geothermal Development; Power Transmission; Rural Electrification Programme; Last Mile Connectivity; National Street lighting Programme; Electrification of Public Facilities; Exploration and Distribution of Oil and Gas; Installation of Transformers in Constituencies; Connectivity Subsidy, and LPG Distribution and Infrastructure Programme.