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Oil: Uganda-Tanzania Sign Final Investment Decision

3 Min Read

Uganda and Tanzania have entered a very busy stage as both countries look towards finalising all necessary paperwork for the oil sector.

Tanzania’s Vice President HE. Philip Isdor Mpango, flew to Kampala early today ahead of the signing of the Final Investment Decision by the Joint Venture Partners.

Final investment Decision [ FID] is the point in the planning process for Capital Investment projects when the decision to make major financial commitments is taken and major contracts are signed and equipment orders are placed.

The oil production project is expected to employ over 60,000 people and is expected to unlock U$15 billion into Uganda’s Economy and accelerate the socioeconomic transformation of Uganda.

“This is a day we are committing to invest $10 billion in the Uganda oil project, mainly the East African Crude Oil Pipeline Tilenga Project and Kingfisher Projects before the first oil in 2025,” said TotalEnergies, Patrick Pouyanne.

Uganda is expected to produce 230,000 barrels of oil per day (at peak). Over $10 billion to be invested in the economy

According to the government of Uganda, “When the Final Investment Decision is signed, our Oil and Gas sector is expected to increase employment of Ugandans. Companies will directly employ about 14,000 people, Indirectly, about 45,000 people will get employed by the contractors.”

Uganda is expected to produce 230,000 barrels of oil per day (at peak). 57% of the  jobs will go to Ugandans. The direct employment of over 14,000 individuals is expected to create a total of USD. 48.5 million annually. First Oil drop out of the ground is expected in 2025.

It also said Uganda has made significant strides in promoting National Content. The main objective of the country for national content in the oil and gas sector is to achieve in-country value creation and retention whilst ensuring competitiveness, efficiency,& effectiveness.

The historic Final Investment Decision for Uganda’s oil  and gas projects comes after 15 years since the country announced commercially viable resources.