To our members,
Congratulations on having a productive year!
The Uganda Chamber of Mines and Petroleum (UCMP) takes this opportunity to congratulate our members for having such a productive year! We are proud to see you grow with Uganda’s oil and gas developments and the mining sector. The sectors have unlocked the economic, social, and transformational potential that goes beyond Uganda’s boundaries.
UCMP is excited to say it has been working with the best set of members and that is a wonderful privilege. May you all have a prosperous holiday season! And look forward to everything that’s yet to come.
Milestones in the Oil and gas
The year 2022, has been one of the most memorable in Uganda’s oil and gas journey. The Joint Venture Partners, (TotalEnergies E&P, China National Offshore Oil Corporation, Uganda National Oil Company, and Tanzania Petroleum Development Corporation) announced the long-awaited Final Investment Decision (FID) on 1st February.
The FID committed over $10 billion in investment in the Tilenga, Kingfisher, and East African Crude Oil Pipeline (EACOP), successfully unlocking the project’s development phase.
The Petroleum Authority of Uganda’s (PAU) end-of-year report on Tier 1 (major) Contractors shows that several contracts and subcontracts have been awarded since FID. The Tilenga project awarded 31 Tier 1 contracts with several sub-contracts under Tier 2.
The King Fisher project awarded 25 Tier 1 contracts that represented many opportunities for sub-contracts under Tier 2.
Meanwhile, the East African Crude Oil Pipeline (EACOP) issued 14 Tier 1 contracts and several sub-contract opportunities also emerged for both Uganda and Tanzanian companies.
Overall, over $ 7billion worth of contracts were awarded and about 30% were retained by the local companies. The development phase will take three years leading to the oil production scheduled for 2025.
Oil and Gas Conference
In April, UCMP held the 8th Annual Oil and Gas Convention in Kampala under the theme “Maximizing National Content”.
The information shared by all speakers was generous enough to enable any intending entities to prepare adequately for the opportunities. The International Oil Companies, contractors and some of the subcontractors laid bare the opportunity at hand and where possible what needed to be done especially by Ugandan entities in order to secure contracts in the senescent sector.
We congratulate our members who secured these contracts, and there is hope for those who did not get as more opportunities will also present in 2023.
Developments in the mining sub-sector
On October 14th, the president assented to The Minerals and Mining Act 2022-a great achievement during the year. The law intends to realize sustainable utilization of the minerals, increased investment, value addition, national participation, employment, and revenue generation. The idea is to contribute significantly to Uganda’s socioeconomic development and poverty eradication.
The law vests the licensing authority with the minister and provides for state participation. The new law also: Creates a National Mining Company, introduces competitive bidding where the government did exploration for brownfields only and also streamlines the operations of the artisanal miners which is now exclusive to Ugandans and provides for National Content among others.
The Mineral Wealth Conference
In October, UCMP held The Mineral Wealth Conference 2022. Impressive presentations were made under the Theme of “Positioning Uganda’s Minerals for the Green Energy Revolution”.
The theme was a reflection of the current dialogue on the energy transition from fossil fuel to renewable energy sources. The conference evaluated whether Uganda’s vast mineral potential can boost the socio-economic transformation through industrialization, technology transfer, and employment creation agenda as per the National Development Plan (NDPIII) and the global demand for the energy transition.
During the conference, the government said it has prioritized 8 minerals for the green energy transition. These include: copper, cobalt, graphite, Lithium, lead, nickel, Manganese, Rare Earth Elements, Tin, Tungsten, and Tantalite.
As we come to the end of the year, we take this opportunity to thank you so much for your generosity towards all the UMCP activities throughout the year 2022. We truly value your various sponsorships, membership contributions, and subscriptions, which greatly made our activities successful.
We are enthusiastic to start 2023 with you. Thank you.