Uganda wants China to invest more in the country’s oil and gas sector. The East African Country is looking for more capital to help boost its capacity to reach its 2020 energy production goals.
In 2018, Uganda plans to start the process of building a crude oil export pipeline, a refinery, central processing facilities and storage tanks.
The country requires close to 15 billion dollars to finance these activities over the next 3 to 5 years.
Uganda has invited China to expand its presence in the emerging oil and gas sector.
China is already financing major infrastructure projects in the country.
These include hydro electric dams and major road highways and there are plans to contribute to Uganda’s standard gauge railway as well.
Uganda has confirmed it has oil reserves amounting to 6.5 billion barrels.
The country also has an estimated 500 cubic feet of Natural gas.
However, market analysts warn that volatile global oil prices may affect Uganda’s competitiveness.
But at the current rate of 54 dollars a barrel, local bankers say Uganda is safe
Only 8% of the oil rich Albertine graben in western Uganda has been explored.
This means more exploration opportunities are available as the country prepares to begin production in 2020.
