Stanbic raising $3bn to boost 2020 oil production

Ernest Rubondo, the Executive Director Uganda Petroleum Authority makes a point during a panel session at the Energy Industries Council forum hosted by Stanbic Bank in partnership with the British High commission in Kampala. Looking on (Left - Right) is Jimmy Mugerwa the GM Tullow Oil Uganda, Phil Haymes, a UK Oil & Gas specialist, Patrick Mweheire the Chief Executive - Stanbic Bank Uganda and Elly Karuhanga the Chairman of the Uganda Chamber of Mines.

Stanbic Bank Uganda in partnership with the Energy Industries Council EIC and the British High commission have hosted a high-powered trade delegation from the UK who were in the country to introduce British O&G goods and services providers to Uganda and also facilitate JV’s partnerships and strategic alliances with Ugandan businesses.

The delegation, a first by a UK trade envoy to Uganda, was led by Lord Dolar Popat who is the UK Prime Minister’s Trade envoy to Uganda and Rwanda.

Delivering opening remarks at a breakfast forum held to commemorate the visit, Stanbic Bank Chief Executive Patrick Mweheire welcomed the delegation to the country noting, “The UK is a key trading partner for Uganda given the common history we share together and London’s position as one of the world’s premier financial capitals. British companies are therefore well positioned to be valuable participants in the development of Uganda’s hydro carbon sector.”

He continued, “As a bank we firmly believe the Oil and Gas sector is one of the catalysts that will proactively lead Uganda’s economic transformation given the multiple subsectors it touches. This will only happen however if local companies are given the opportunity to participate as active partners in its planning, execution and development. Stanbic Uganda is already playing its part to make this possible and has hosted several local content awareness workshops, collaboration conferences and forums aimed at up skilling local players and fostering partnerships.”

Over 15 Billion dollars is projected as investments required for the full development of Uganda’s Oil and Gas industry which is expected to peak in 2030 with 300,000 barrels being produced on a daily basis.

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Over 80% of the budget has been earmarked for the development of related infrastructure, an Oil refinery and 1,445km pipeline recently launched by the Presidents of Uganda and Tanzania.

Stanbic Bank Uganda alongside Japan’s Sumitomi Mitsui of Japan were appointed as joint financial advisers for the oil pipeline which will connect Uganda’s oilfields in the West of the country to the port of  Tanga in Tanzania.

The bank plans to raise $3 billion USD for the project in the second half of 2018 as Uganda prepares to start oil production by 2020.

Welcoming the guest of honour, Irene Muloni Uganda’s Minister of Energy said, “Lord Popat is a true son of the soil who has returned home to make a difference. Uganda needs investors who not only come looking to make a return but have the best interests of the country at heart.”

Giving a keynote address, Lord Popat who was born in Uganda but left the country at a young age, thanked the Minister and Government for the warm welcome.

He further said, “As the Prime Minister’s Trade Envoy to Uganda I am delighted to be leading the EIC delegation to Uganda. Britain’s oil and gas industry has tremendous expertise and Uganda’s growing energy market – with planned refinery, pipeline and field development project is a perfect place to engage in opportunities. As is the theme for this conference, it is important that oil and gas develops Ugandans and UK companies are here to support that.”

The trade forum was held under the theme “Unlocking opportunities in the oil & gas supply chain”.

Participants in the panel discussion moderated by the Stanbic Chief Executive included Ernest Rubondo the Executive Director of the Uganda Petroleum Authority, Hon Elly Karuhanga the Chairman of the Uganda Chamber Mines, Jimmy Mugerwa the General Manager of Tullow Uganda and Phil Haymes – DIT UK Oil and Gas Specialist.