HON. IRENE Muloni
The Minster of Energy and Mineral Development
 |  MOE: Government denies abandoning Kenya’s pipeline route Uganda’s Energy minister Irene Muloni was in Kenya for the best to meet Kenyan government officials regarding the route of the pipeline. The Kenya visit comes after Uganda, Tanzania government and Total E&P signed a Memorandum of Understanding (MoU) to explore the possibility of the pipeline passing through Tanzania from Hoima.Kenya and Uganda had started working on modalities of financing a 1,500km route from Hoima through Lokichar in Northern Kenya to the Lamu Port. The signing of the MoU with Tanzania appeared contrary to the understanding with the Kenyan government over two possible routes in the country at the recently concluded Northern Corridor Summit and bilateral discussions between President Museveni and Uhuru Kenyatta. Read more ▪ MOE: Building oil pipeline: Evaluation of firms starts The Government has started evaluating international firms competing for the construction of the over 200km Hoima-Kampala multi petroleum product pipeline.Several international firms from outside Africa have submitted bids to build the energy product pipeline from Hoima district, where the oil refinery is to be constructed, to Buloba, in Wakiso, near the country’s capital city, where the distribution terminal is to be set up.According to the oil refinery project spokesman, Bashir Hangi, the Government is evaluating the firms to identify a company that will generate a blueprint for the pipeline’s route and conduct an environmental baseline study for the project.After the pipeline route has been determined, Hangi, another firm will be engaged to conduct and implement the Resettlement Action Plan (RAP) for the people who will be affected by the project.Read more ▪ Fresh statistics from the ministry of Energy and Mineral Development indicate a steady increase in Uganda's mineral reserves, a development that could transform the country's outlook.Energy Minister Irene Muloni released the figures during the fourth Joint Sector Review meeting for the ministry of Energy and Mineral Development at Speke Resort Munyonyo. Muloni said in addition to an increase in oil and gas reserves, other mineral reserves had also shot up. Government announced that the country's oil reserves had increased to 6.5 billion barrels of oil, from 3.5 billion, while natural gas reserves had also gone up to 500 billion cubic feet ,from 14 million cubic feet. Muloni revealed that in addition to the previously known iron ore deposits mainly in Kabale district, there were new discoveries elsewhere.Read more ▪ MOE: Govt signs Shs12 trillion contract for oil pipeline feasibility study The government has signed a contract with Toyota Tsusho, a Japanese company to carry out a feasibility study that will see the crude oil pipeline construction start.Energy minister Irene Muloni signed the $4.5b (Shs12.3 trillion) contract at the Ministry of Energy Sector Review held in Kampala.Ms Muloni said the feasibility study is one of the regional projects that the governments of Uganda, Rwanda and Kenya agreed to develop together in order to share resources.The countries would also be able to come up with the least cost tariffs for the export of crude oil to access the international markets. Read more ▪ Goverment has started paying power connection fees for rural households to encourage use of electricity by the rural folks, energy minister, Irene Muloni, has disclosed. “All households near the power lines (within 15 metres range) are being connected. ‘‘We only request the premise owners to contact certified electricians to wire their premises and inform any power distribution company near them. Their premises will be connected for free,” Muloni said. She was speaking during a workshop organised by the United Nations Foundation in partnership with the World Wide Fund for Nature Uganda at Protea Hotel in Kampala. Presenting a keynote address on universal energy access in Uganda, Muloni revealed that the free power connections are targeting 1.28 million new service connections in the short and medium term. “To increase the number of connections, we are implementing the output based aid programme, which provides a subsidy to enable electricity connections in the rural areas. This will help those who are unable to pay connection fees,” she noted. The minister urged power distribution service providers and development partners to buy into this strategy for both increasing the financial basket and vigilance in connections. Read more ▪ MOEMD: Govt selects two final bidders for oil refinery Two consortia from Russia and South Korea have emerged as the final bidders of Uganda's $2.5 billion refinery after two others from China and Japan were knocked out of the bidding process, the Ministry of Energy said.The ministry said in statement that a consortium led by South Korea's SK Energy Co. and another led by Russia's RT-Global Resources had been selected to proceed to the final phase of the bidding process.Uganda wants to add value to its crude output to maximise earnings from its hydrocarbon reserves in the Albertine Basin in Western Uganda.Government geologists estimate reserves at 3.5 billion barrels with 1.7 m barrels recoverable. The refinery is expected to be set up in Hoima district.Early this month the two companies together with China's state-owned China Petroleum Pipeline Bureau (CPPB) and Japan's Marubeni Corporation were invited to submit bids from an initial shortlist of six firms. Read more ▪ MOEMD: China Bank Moves to Save Karuma Dam Chinese government owned Exim Bank, the main financiers of the ongoing 600 MW Karuma Dam project, has finally signed the much-awaited advance payment guarantee for the funding of the project. According to a document titled ‘Advance payment Guarantee No. BKD2014LG00120’ issued and addressed to Ministry of Energy and Mineral Development, Irene Muloni, and signed by Zhang Dajin on behalf of Exim Bank Head office, the bank agrees to cover Sinohydro Corporation, Karuma Dam contractors with a guarantee. Sinohydro Corporation has already committed its own funds for the ongoing construction works at the project site ahead of the release of funding by the government of Uganda. Last month the Chairman and President of Exim Bank of China Mr. Li Ruogu was in Uganda to meet President to confirm and present details of the project funding. Read more ▪ Six oil firms here to inspect the Oil wells Six shortlisted oil firms for Uganda’s refinery project have arrived in the country to inspect the oil wells. They are China Petroleum Pipeline Bureau from China, Petrofac from UAE, RT-Global Resources from Russia, Vitol SA from Switzerland, SK Energy from S.Korea and Marubeni Corporation from Japan. According to the programme, the bidders will visit the oil fields in the Albertine Graben and the area where the refinery is going to be developed at Kabaale Parish, Buseruka Sub County in Hoima District.They will also hold a meeting with China National Offshore Oil Corporation (CNOOC), TOTAL and TULLOW the companies licensed to undertake petroleum exploration, development and production of the oil and gas resources in the country. The six firms were shortlisted and the winner for the development of the 60,000 barrels per day (BPD) oil refinery and related downstream infrastructure is expected to be announced by the Ministry of Energy.Meeting the firms at Kampala Serena Hotel, Eng. Irene Muloni, Minister of Energy & Mineral Development (MEMD), said: 'We invited the bidders for this conference to share with them information on the developments in Uganda’s oil and gas sector, and more specifically to introduce the refinery project.” Read more ▪ Uganda to announce oil refinery investor in July The east African country first discovered crude deposits in the Albertine rift basin along its border with Democratic Republic of Congo in 2006 and reserves are estimated by the government at 3.5 billion barrels.The government moved closer to getting the hydrocarbons industry off the ground last month when it signed a memorandum of understanding with three oil firms laying out a blueprint for the commercial development of its oil fields.According to the deal, crude produced by the three firms - Britain's Tullow Oil, France's Total and China's CNOOC - will be shared between a thermal power generation plant, a planned refinery and an export pipeline.Commercial oil production is expected to begin in 2016 at the earliest.In December the energy ministry announced five consortia and one individual firm had been shortlisted to bid for the $2.5 billion refinery. The lead investor - which will also operate the plant - is expected to take up a 60 percent stake, with the remainder going to the Ugandan government. Read more ▪ Transforming Uganda’s black gold to green gold Goverment will utilize its discovered petroleum resources to create green gold from the black gold. This was revealed by Eng. Irene Muloni, Uganda’s Minister of Energy and Mineral Development while addressing delegates attending the CERA WEEK 2014, IHS Energy’s annual executive conference that was held in Houston, Texas USA. “Uganda is an agricultural country and we will use the revenues from this natural resource to create lasting value through upgrading our infrastructure, mechanizing agriculture, increasing access to energy for the population and protecting our environment,” Eng. Muloni said.Uganda has proven petroleum resources currently estimated at 3.5billion Barrels of oil in place. The discovery was made in 2006 in the Albertine Graben.In her remarks Eng. Muloni noted that it is an exciting time for Uganda with significant progress being made in the oil and gas sector.“The finding cost for oil in Uganda is US $1 per barrel which is one of the lowest in the world. This coupled with a drilling success rate of above 85% makes Uganda an attractive destination for investment,” she added. World over, the drilling success rate averages between 10% and 30%. Read more ▪ Uganda to sign memo with oil firms over production-ministry Uganda will sign a memorandum of understanding on Thursday with Britain's Tullow Oil, France's Total and China's CNOOC, an Energy Ministry spokesman said, in a vital step towards starting oil production in the country. Energy Minister Irene Muloni said last month that developing Uganda's oil fields and building infrastructure would cost between $15 billion and $22 billion, although there were plans to try to reduce that. Read more ▪ Oil Refinery: Gov't Walks Tightrope As Bidders Are Shortlisted Government has announced the second phase of the public tender for Lead Investor/Operator for the development, implementation and operation of 60,000 barrels per day (BPD) oil refinery and related downstream infrastructure in Uganda.The Request for Qualification (RFQ), which launched on October 8, 2013, attracted responses from seventy-five firms. According to a statement from the Energy and Mineral Development ministry, 8 consortia submitted detailed Statements of Qualifications, and six were short-listed to receive the Request for Proposals (RFP). One of these firms/consortia will be selected during the first half of 2014 to lead the $2.5bn Uganda Refinery Project. Read more ▪ MEMD: Karuma Power Project To Create New 10,000 Jobs The construction of the proposed Karuma Hydropower Project on River Nile is expected to create more than 10,000 new jobs according to Chinese giants Sinohydro Corporation the power plant and transmission line contractorsConstruction of the 600-megawatt Karuma dam will begin in January 2014 and it will start producing power by 2018 and Irene Muloni, the minister of Energy and Mineral Development, said the Chinese firm would tap into the local labour, and create opportunities for the people around.“During construction, the locals will provide labour and construction materials to the project. As provided for by Section 76 of the Electricity Act, 1999, Kiryandongo district will receive royalties, which will accrue from the production of electricity.Jobs expected include opportunities for welders, joiners, porters, carpenters, cooks, cleaners, electrical and mechanical engineers and masons among others. Read more ▪   Uganda and the International Atomic Energy Agency (IAEA) have signed a five year framework for the peaceful application of nuclear technologies to solve everyday problems like hunger and poverty.“This is expected to match nuclear technology to national priorities for sustainable development,” Irene Muloni, the energy minister said.“The focus of the cooperation will be feasibility studies for nuclear power projects, uranium exploration and evaluation, cancer management, food and agriculture, water resource management and strengthening the national nuclear and radiation safety infrastructure.” Read more |