C. Bank Governor: Low Oil Prices To Hit Investment In Uganda's Oil Sector
After a protracted tendering process, Uganda this month picked a consortium led by Russia's RT Global Resources to develop and operate the country's planned $2.5 billion refinery.
UK's Tullow Oil and French oil major Total are awaiting government approval of their applications for production licenses expected to trigger so called final investment decision on several discoveries in the Albertine.
The Ugandan government has previously estimated the cost of developing the country's oil fields and building the required infrastructure at between $15 billion and $22 billion.
This week Uganda also announced it had started conducting a licensing round for six exploration blocks covering nearly 3,000 square kilometres.
Tumusiime-Mutebile said the oil price crisis would also likely hit private investments in Uganda's non-oil sector and dampen growth prospects. "We can expect the uncertainty about future global oil prices to ... cause real economic growth rates to be lower," he said.
The IMF has forecast that Uganda's economic growth will hit 6.1 percent in the 2014/15 (July-June) fiscal year from 5.7 percent in the previous period.
The governor also cautioned against expanding public spending tied to expected petrol earnings. "If government were to undertake such commitments and future oil revenues are too low ... the government would face a fiscal crisis." he said.
(Reporting by Elias Biryabarema; Editing by Edith Honan and Crispian Balmer)
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