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The logistics challenges awaiting the oil supply chain

By Daniel Otto

Experts say logistics in the oil and gas industry is one of the most complex exercises yet, compared to other business, and for a country like Uganda that is just entering the oil industry, the challenges are expected to be even tougher. 

Which business model?

Over the past few months, there has been an impassioned public discussion around the revival of the Uganda Airlines. The avid debates have centred on: Whether Uganda should revive the airline in the very first place; whether the country has the capacity to run an airline or not; and whether with the ostensibly high levels of corruption in the country, the airline will survive or will just sink tax players’ money into some dark abyss.   

Gulu to get logistics hub

Plans are in advanced stages to build and set up a logistics hub in Gulu town to service trade and business in northern Uganda, South Sudan and the eastern parts of the Democratic Republic of the Congo.

Trademark East Africa (TMEA) a donor-funded facility to promote trade among East African states said recently that they had secured US$8.6 million from the UK’s Department for International Development (DFID) and the European Union, for the purpose.

Crude Oil rises to US$70 per barrel, as Uganda inches closer to getting her oil out of the ground

By Jacob Okwii.

The price of Brent crude this week went up to US$68 a barrel. Analysts believe the price is likely to continue on the bullish side owing to robust global demand growth, low US production and OPEC-Russia production cuts to the global supply.

Last week, Reuters quoted Goldman Sachs as saying, “This rally (of crude) has been driven first by robust fundamentals, with strong demand growth and high OPEC compliance accelerating. We see increasing upside risks to our $62 per barrel Brent and $57.5 per barrel WTI forecast for the coming months.”

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