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Oil in Uganda – Hard bargaining and complex politics in East Africa From 2006 onward, a series of oil discoveries put Uganda on the global energy map. These were the largest onshore oil finds in sub-Saharan Africa in over two decades, and part of an oil and gas surge in East Africa and a wider energy boom on the continent. ,The Oxford Institute for Energy Studies is committed to filling some of the gaps in the understanding of the African energy scene and has published papers, spanning the institute’s oil, gas and electricity programmes, which include; a paper on Kenya’s oil potential ‘ Kenya – An

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Uganda’s oil finds were the largest onshore oil discoveries in sub-Saharan Africa in over two decades, part of an oil and gas surge in East Africa and a wider energy boom on the continent.¹ But almost immediately after the discovery of oil, a series of regulatory disputes between the Ugandan government and international oil companies delayed ,A Belated Boom: Uganda, Kenya, South Sudan, and prospects and risks for oil in East Africa East Africa has followed a long road of highs and lows in developing its oil resources. On the back of high global oil prices between 2004 and 2014, a rush of new exploration put the region on the map as a new frontier for African oil.

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Oil in Uganda – Hard bargaining and complex politics in East Africa. From 2006 onward, a series of oil discoveries put Uganda on the global energy map. These were the largest onshore oil finds in sub-Saharan Africa in over two decades, and part of an oil and gas surge in East Africa and a wider energy boom on the continent. ,The Oil and the Middle East Research Programme of the Oxford Institute for Energy Studies was established in 2009. It is dedicated to the advanced study of contemporary oil markets, production, consumption and policy. With a historical focus on the resource-rich economies of the Middle East, research on the Programme

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Uganda’s oil finds were the largest onshore oil discoveries in sub-Saharan Africa in over two decades, part of an oil and gas surge in East Africa and a wider energy boom on the continent.¹ But almost immediately after the discovery of oil, a series of regulatory disputes between the Ugandan government and international oil companies delayed ,Oxford Institute for Energy Studies, October 2015, Bassam Fattouh for Oxford Institute for Energy Studies, Oil in Uganda: Hard bargaining and complex politics in

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A Belated Boom: Uganda, Kenya, South Sudan, and prospects and risks for oil in East Africa East Africa has followed a long road of highs and lows in developing its oil resources. On the back of high global oil prices between 2004 and 2014, a rush of new exploration put the ,Regulation to keep the industry in check is largely non-existent. In a report on the oil industry in the country two years ago, the Oxford Institute for Energy Studies noted: “To date, companies are basically self -regulating. Uganda’s National Environment Management Authority is underfunded, understaffed, and lacks political authority.”

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Oil in Uganda: Hard bargaining and complex politics in East Africa Oxford Institute for Energy Studies, 2014. 27: 2014: Uganda, Kenya, South Sudan, and ,Mario Mansour* & Dr Carole Nakhle(2016) ‘Fiscal Stabilization in Oil and Gas Contracts: Evidence and Implications’Oxford Institute for Energy Studies Paper SP 37. TOPCO v. Libya I.L.M.1;(1978) AGIP v. Congo ICSID Case No.ARB/77/1,

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Bindemann, K, “ Production Sharing Agreements: An Economics Analysis” (1999) 25 WPM, Oxford Institute for Energy Studies, 49 Maniruzzaman A.F.M, “The New Generation of Energy and Natural Resource Development Agreements: Some Reflections” (1993) 11(4) J. Energy & Nat Resources L pp 207- 247 ,Agreement. On 10 April 2018, the Albertine Graben Refinery Consortium signed a definitive agreement with the government of Uganda, committing to design, develop, finance, construct, operate and maintain the planned 60,000-barrel-per-day Uganda Oil Refinery in Hoima District, in the Western Region of Uganda The signing of this Project Framework Agreement, allows for the commencement of the

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However, according to the Government-owned Danish Institute for International Studies based in Copenhagen, Denmark and the Oxford Institute for Energy Studies, an independent Centre of the University of Oxford in England, the discoveries are far below those of countries like Saudi Arabia, Canada and Venezuela which have hundreds of billion ,By 2014, about 6.5 billion barrels of oil had been found in the Albertine Graben region, along the border with the Democratic Republic of Congo, according to a 2015 study by the Oxford Institute for Energy Studies. Oil production is expected to start in 2020, when the construction of an oil pipeline running from the oil-rich Hoima district to

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However, according to the Government-owned Danish Institute for International Studies based in Copenhagen, Denmark and the Oxford Institute for Energy Studies, an independent Centre of the University of Oxford in England, the discoveries are far below those of countries like Saudi Arabia, Canada and Venezuela which have hundreds of billion barrels of reserves. ,Oil in Uganda: Hard bargaining and complex politics in East Africa Oxford Institute for Energy Studies, 2014. 27: 2014: Uganda, Kenya, South Sudan, and

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Uganda's Sovereign Wealth Fund has been hailed by several global groups interested in transparency and better management of natural resources. The groups include the Royal Institute of International Affairs that has since created New Petroleum Producers Group and the Oxford Institute for Energy Studies. ,Mario Mansour* & Dr Carole Nakhle(2016) ‘Fiscal Stabilization in Oil and Gas Contracts: Evidence and Implications’Oxford Institute for Energy Studies Paper SP 37. TOPCO v. Libya I.L.M.1;(1978) AGIP v. Congo ICSID Case No.ARB/77/1,

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Bindemann, K, “ Production Sharing Agreements: An Economics Analysis” (1999) 25 WPM, Oxford Institute for Energy Studies, 49 Maniruzzaman A.F.M, “The New Generation of Energy and Natural Resource Development Agreements: Some Reflections” (1993) 11(4) J. Energy & Nat Resources L pp 207- 247 ,The Oxford Institute for Energy Studies is an independent energy research institute specialising in advanced research into the economics and politics of international energy across oil, gas and electricity markets.

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