THE ROLE OF UGANDA S PROPOSED NATIONAL OIL COMPANY. Ernest N. T. Rubondo COMMISSIONER Petroleum Exploration and Production Department

Transcription

1 THE ROLE OF UGANDA S PROPOSED NATIONAL OIL COMPANY By Ernest N. T. Rubondo COMMISSIONER Petroleum Exploration and Production Department Presented at the PwC Africa Oil and Gas Leadership Conference 12 th December 2014, Dar es Salaam, Tanzania 1

2 PRESENTATION OUTLINE 1. Introduction Uganda s petroleum resources Status of licensing Institutional framework 2. The proposed Uganda National Oil Company (NATOIL) Roles Strategies for effectiveness 2

3 INTRODUCTION Uganda s petroleum resources 21 oil and/or gas discoveries made in the country to date Oil Source: PEPD Natural Gas Over 6.5 billion barrels of Oil In Place currently discovered Of which 1.4 billion barrels of oil estimated as recoverable About 500 Bcf of Gas In Place (nonassociated)discovered Less than 40% of the Albertine Graben has been evaluated

4 INTRODUCTION Status of licensing & petroleum activities Currently 4 active PSAs 1 production licence issued to CNOOC in Sept applications for production licences by Tullow over 9 discoveries being discussed. 2 applications for production licences by TOTAL over 3 discoveries being discussed. 4 discoveries still under appraisal by TOTAL. Source: PEPD

5 INTRODUCTION Institutional framework The National Oil and Gas Policy (2008) recommended separation of regulatory, policy setting and commercial aspects currently being undertaken by the Ministry of Energy and Mineral Development (PEPD) Therefore the Petroleum (Exploration Development and Production Act) 2013 provides for creation of the following institutions: DIRECTORATE OF PETROLEUM (MINISTRY OF ENERGY AND MINERAL DEV T) Policy and Licensing NATIONAL OIL COMPANY Commercial and Business interest of the state PETROLEUM AUTHORITY Regulation of the oil and gas sector The process of putting in place these institutions is at an advanced stage 5

6 THE UGANDA NATIONAL OIL COMPANY Creation, ownership & management The company shall be incorporated under the Companies Act, 2012 Company will be wholly owned by the state The company shall be subject to and managed in accordance with the Companies Act, 2012 and the Petroleum Act

7 THE UGANDA NATIONAL OIL COMPANY Roles The key role of NATOIL will be to manage Uganda s commercial aspects of petroleum activities. Specifically NATOIL will; handle the State s commercial interests in the petroleum sub-sector, manage State Participation in petroleum activities, manage the marketing of the country s share of petroleum received in kind, develop in-depth expertise in the oil and gas industry, optimise value to its shareholders administer contracts with co-ventures participate in meetings of the operating committee investigate and propose new upstream, midstream and downstream ventures initially locally but later internationally. 7

8 THE UGANDA NATIONAL OIL COMPANY Government strategies to ensure NATOIL s effectiveness & enhanced recog. as a partner by IOCs Keeping NATOIL focussed on the State s commercial interests Insulation from bureaucracy and political play Promotion of healthy competition among oil companies Reaping benefits of diversified expertise and approach Allowing correct bench-marking of the company s performance Avoiding power concentration Facilitating expansion abroad 8

9 SUMMARY With an estimated 1.4 billion barrels of recoverable oil resources, Uganda is firmly on its way to becoming an oil producing nation. The National Oil and Gas policy (2008) recommended the separation of Policy, Regulation and Commercial functions of the State in the oil and gas sector. NATOIL shall be incorporated under the Companies Act 2012 and shall be responsible for managing Uganda s commercial aspects of petroleum activities. The process of its formation is currently ongoing. The National Oil and Gas Policy (2008) recommends some measures by Government to ensure the business effectiveness of NATOIL and also enhance its recognition as a partner by IOCs. 9

10 s Upstream petroleum Activities Commercialization (refinery, infrastructure, etc National content Training Environment (in conjunction with NEMA & UWA) 10

11 Thank You Further Information; PETROLEUM EXPLORATION AND PRODUCTION DEPARTMENT, MINISTRY OF ENERGY AND MINERAL DEVELOPMENT Tel web: 11