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Uganda announces a deal to begin oil production.

As Uganda announces a deal to begin oil production, Museveni claims that the transition to renewable energy will have no impact on the country.

As Uganda announces a deal to begin oil production, Museveni claims that the transition to renewable energy will have no impact on the country.

President Museveni has stated that the worldwide change to renewable energy will not have a significant impact on Uganda’s oil production, contrary to popular belief.

The global push for a transition to renewable energy has gained traction in an effort to save the environment, with many arguing that the world now has to adopt energy sources such as solar, biogas, ethanol, wind, hydropower, and geothermal.

Many experts believe that in the next 20 years, the market for gasoline-powered vehicles will have shifted in favor of electric vehicles.

Museveni, however, downplayed the statements during a ceremony on Tuesday to sign the Final Investment Decision between TotalEnergies and China National Offshore Oil Corporation (CNOOC) on the one hand, and Uganda and Tanzania on the other, stating that oil will continue to be as useful as it is now.

There is a global push towards sustainable energy, and many people are concerned that our oil project will not find a market. We’ve looked into it. Even with the transition to sustainable energy, there is no way our oil will go unnoticed, “Museveni added.

Other than fuel for vehicles, the president stated there are many other uses for oil, which he requested specialists to explain to his audience before committing himself.

“We’ve looked into it, and there’s no way petroleum won’t find a market.” The shirt I’m wearing is made up of 65 percent polyester. Cotton alone would not have been able to create a shirt as good as this one. It is better and more durable than one made of cotton. People think of vehicles when we talk about fading out. Other non-fuel use of petroleum will continue for a long time,” he stated.

Apart from fuel for cars, the Permanent Secretary of the Ministry of Energy, Eng. Irene Batebe, revealed to the audience that oil has many other uses.

“Oil is used in a variety of ways, such as in the petroleum chemical sector, where we make products like polyester, synthetic rubber for tyres, and petroleum jelly that we use in our daily lives.” Some of the medicines we use are coated with petroleum-based chemicals. Petroleum will be utilized for a long time after the fuel element is phased out until there are items to replace it for use in day-to-day life, which will take a long time,” stated Eng. Batebe.

Uganda may be able to collect money from its oil for up to 40 years before it is phased out, according to her.

The oil narrative is recounted.

At the same event, President Museveni told the story of Uganda’s oil business, which began in the 1950s after the British discovered it.

When the NRM came to power in 1986, Shel BP and the British informed him they could assist Uganda drill for oil, but he said he decided to look for Ugandan professionals to help, adding that he sent a team to study oil, which included Dr. Fred Kabagambe Kalisa and Ernest Rubondo, among others.

According to Museveni, when the Ugandans returned home after gaining knowledge from overseas, he asked them to work with Britain and Shell BP to extra the country’s oil, but the foreigners refused, claiming there was no oil.

“Those individuals (Kabagambe Kaliisa) gave me computer images claiming there was oil but claiming there was no money for drilling and inviting Heritage, Herman, and Tullow as the first businesses to drill.” He stated, “They proved the British and Shell BP incorrect.”

When the businesses arrived, Museveni said there was a deadlock over whether to build a refinery or export crude oil.

While Museveni was in favor of the former, foreign firms wanted the crude oil pipeline built to export oil, according to Museveni.

“In the end, refinery and pipeline were agreed upon.”

Museveni stated that the pipline’s path was also a sensitive subject, with the Mombasa route being the first option, but eventually abandoned.

“At first, some people suggested taking the Mombasa route, which was a little shorter but had a lot of built-up areas where we would have to make a lot of compensations, which Kenyans were not willing to make.” Lamu (in Kenya) was also an option, although it was more expensive and took longer. That’s how we wound up on the Tanga route.”

He expressed his delight that the East African Crude Oil Pipeline will pass through Tanzania, saying that it is a gesture of gratitude for former President Julius Nyerere’s participation in Uganda’s and Africa’s liberation efforts.

“I’m glad to know that this project will be able to travel through Tanzania and serve our brothers.”

According to Museveni, the oil pipeline will help not only Uganda, but also neighboring nations with oil prospects such as Tanzania, South Sudan, Burundi, and the Democratic Republic of Congo.

He added that the pipeline may also be utilized to transfer gas back to Uganda for domestic consumption.

“Our is an extremely important initiative for this region.” CNOOC and Total will invest $10 billion over the next four years. Our economy will benefit from this money. “This oil can help in various ways and is very welcome,” Museveni stated.

Uganda has moved closer to beginning oil production by signing the Final Investment Decision with TotalEnergies and China National Offshore Oil Corporation (CNOOC).

Ruth Nankabirwa, the Energy Minister, had earlier called the signing event as a significant milestone for the country.

“This achievement puts us on track for first oil in 2025.” Approximately 160,000 jobs are estimated to be created during the project’s construction, according to Nankabirwa.

 

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