Transcript INVESTMENT OPPORTUNITIES IN THE Energy, Minerals, Oil

INVESTMENT OPPORTUNITIES
FOR DIASPORAS SME IN THE
ENERGY & MINERALS SECTOR IN
UGANDA
1st Ugandan UK Convention
27th August 2011
Presentation
By
Hon Eng Irene Muloni
Minister of Energy and Mineral Development, Uganda
27th Aug 2011
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INTRODUCTION
I want to thank Mr. Willy Mutenza for organizing this convention and I
am honored to be able to present opportunities in the energy sector
to Diaspora investors.
In the medium term, the key priorities in the energy and minerals
sector are:
 to increase electricity generation capacity and development of
the transmission network;
 to increase access to modern energy services through rural
electrification and renewable energy development;
 to promote and monitor petroleum exploration and development
in order to achieve local production; and
 to promote mineral investment through the acquisition of
geoscientific data and capacity building.
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STRATEGIES TO INCREASE POWER GENERATION
HYDRO
Power Projects Being Developed
There are a number of projects being developed inline
with the National Development Plan. The majors ones
are:
 Bujagali Project (under construction) – 250 MW
 Karuma Hydropower project - 600 – 700 MW
 Isimba Hydropower Project - 100 MW
 Ayago Hydropower Project – 600 - 700 MW
The status of these projects is as follows:
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i) Karuma Hydropower Project (700MW):
 Government is developing the Karuma project in the
medium term as a strong public project.
 Energy Infratech Pvt. Ltd of India finalised the detailed
feasibility study and preliminary designs,
 The tender documents have been finalised and the
process for procurement of the EPC Contractor is
underway.
 This hydropower station will constructed using funds
from the Energy Fund as a Public Private Partnership
with Government taking the lead.
 Construction work is expected to commence early 2012.
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ii) Isimba Hydropower project: (100MW):
 This is located 15km after Kalagala falls on
river Nile.
 The site has an estimated capacity of at least
140MW.
 Fitchner of Germany was contracted to
undertake the necessary studies.
 The studies will be finalised by Dec 2011.
 The project will be developed by the private
sector.
 Construction work is expected to commence
in 2012.
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iii) Ayago Hydropower Project (600 –
700MW)
 With the support of the Japanese Government, a
consortium of Japanese power companies, J Power
and Nippon Koei are carrying out the pre –
feasibility study
 Full feasibility study of the Agago project will be
undertaked later this year.
 Ayago will be developed as a Public Private
Partnership.
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Other Projects under the National Development
Plan
 Study, design and construct Ariranga hydro power plant to
generate 400MW
 Build a thermal Power Plant (700MW as part of the refinery) to
utilize locally produced heavy fuel oil.
 Renewable Energy development
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Design and construct solar thermal plants to generate 200MW.
Study, design and build Geothermal power plants to generate 100MW.
Increase the co-generation capacity to 150MW from sugar factories using
bagasse, wood, waste crop and garbage.
Develop 150 MW from mini hydros.
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Transmission Projects:
A number of transmission lines have been earmarked to
evacuate power from the generation plants. These
include:
 Nkenda – Mputa – Hoima (132KV, 254km);
 Karuma – Kawanda (400KV, 264 km);
 Karuma – Olwiyo (132KV, 60km);
 Karuma – Lira (132 KV, 80km);
 Karuma-Gulu (132KV, 70km);
 Isimba interconnection (132KV, 40km);
 Kawanda – Masaka (220KV, 142km).
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Transmission Projects Cont’d:
 Kampala – Entebbe (132KV);
 Mirama – Kabale (132 KV);
 Hoima - Kafu (132 KV);
 Lira – Gulu – Nebbi (132 KV);
 Opuyo – Moroto (132KV, 200km);
 Tororo – Opuyo – Lira upgrade (132KV, 260km);
 Mbarara – Nkenda (132KV, 160km) and
 Lira-Kitgum (132KV, 125km).
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INVESTMENT OPPORTUNITIES
Opportunities in Hydropower Development
 Participation in the Public Private Partnership (PPP).
 Contribution to equity.
 Participation in the Engineering, Procurement, and
Construction (EPC) Contract.
 Supply of Equipment required in the project.
Opportunities in Transmission include
 Contractors for the EPC
 supply of equipment such as transformers, cables
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STATUS OF OIL AND GAS SECTOR
30E
31E
32E
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STATUS OF EXPLORATION
EA5 RHINO CAMP BASIN
Size 6,040 sq.km
Licensed to Neptune Petroleum
(U) Ltd (now Tower Resources)
on 27th Sept 2005
EA1 PAKWACH BASIN
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3N
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Total acreage of about
23,000km2
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5 active Production Sharing
Agreements (PSA)
2N
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PSA Operators and
partners
1N
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Size 4,285 sq.km
Licensed to Heritage Oil and Gas
Ltd and Energy Africa (now
Tullow Oil) on 1st July 2004
EA2 LAKE ALBERT BASIN
Size 4,675 sq.km
Licensed to Hardman Resources
Ltd and Energy Africa Ltd (now
Tullow Oil) on 8th October 2001
EA3A SEMLIKI BASIN
Size 1,991 sq.km
First licensed to Heritage Oil and
Gas Ltd. as part of EA3 on 15th
January 1997
Re-licensed to Heritage Oil and
Gas Ltd. and Energy Africa (now
Tullow Oil) on 8th Sept 2004
EA3B SEMLIKI BASIN
Size 1,786 sq.km
Includes Turaco Prospect Area
Not licensed
EA 4A LAKES
EDWARD/GEORGE BASIN
0
● Size 3,812 sq.km
• Not Licensed
0
EA4B LAKES
EDWARD/GEORGE BASIN
● Size 2,021 sq.km
• Licensed to Dominion Petroleum
Ltd. 27th July 2007
1S
30E
31E
32E
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LICENSING
 Due to systematic effort on promotion in the sector, five
out of the 11 Exploration Areas (EA) in the Albertine
Graben have been licensed to international oil companies.
 Over US$1bn invested in seismic data acquisition and
processing in addition to the drilling of wells since 1998
by companies currently licensed in the country.
 The companies are Tullow Oil, Neptune Petroleum (U)
Limited and Dominion Uganda Limited.
 The investment levels in this sector will increase with the
expected entry of International Oil Majors like Total E &
P and China North Offshore Oil Corporation (CNOOC).
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Oil Refinery in Uganda
Government finalized a study for the refinery.
 The project is feasible and viable.
 The recommendation is to develop a 60,000
BOPD refinery that will later be expanded to
120,000 BOPD and 180,000 BOPD.
 Since the 60,000 BOPD Refinery takes 5 years
to develop, the strategy is to start with a
modular small refinery of 20,000 BOPD
delivered within 3 years.
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Investment Opportunities in the
Service Provisions
 Clearing and Forwarding;
 Flight Charters
 Insurance Services;
 Civil construction for access roads and drilling pads;
 Environmental Consultancy including associated
R&D;
 Provision of ICT services and facilities;
 Provision of Security services to protect the investment
and terror threats;
 Catering/Camping services
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Investment Opportunities in the
Upstream Oil and Gas Sectors
 Joint Ventures and farm-in arrangements in existing
licences;
 General works and construction,
 Logistical services,
 Geophysical surveys, particularly seismic surveys,
 Construction and Fabrication,
 Refining and infrastructure development (e.g. pipelines),
 Future petrochemical industry and many others.
 Capital for the emerging infrastructure such as refining and
transportation of petroleum commodities and products;
and
 Power generation by Independent Power Producers
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CONCLUSION
 Investment in the Energy, Oils and Gas sectors is
priority number one for the Government.
 These Sectors are expanding very fast with a legal
and institutional framework for carrying out
business offering tremendous opportunities.
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CONCLUSION
 The opportunities include: Participating in the construction of Hydroelectric Power
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Plants, construction in transmission lines, construction
of small renewable energy projects and in Rural
Electrification programmes.
Supply of equipment in the sector.
Participating in the construction of the Petroleum
Refinery and the associated infrastructure.
Participation in the exploration of minerals and
Petroleum resources.
Sponsoring and financing of projects in the sectors at
attractive rates of return.
 The above, combined with the accountable
leadership, which we have, will ensure sound
returns for your investment.
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