By Our Analyst
Africa has become a centre of focus for various power interests around the world. In the last five years, China, Japan, the European Union, the United States of America- and most recently Russia, have each convened high level summits and conferences attracting African heads of state and government, to court them to do business.
The 183 megawatt (MW) Isimba hydro power dam has been launched after 47 months of construction. The new dam brings Uganda’s total electricity production to 1,167MW- over 1,100 of which is from hydro power. This gives the country a rating of average producer by Africa regional standards. However, when Karuma is brought on line at the end of this year with 600MW, Uganda’s total production will jump to over 1, 700MW, putting the country among the top quartile of high electricity producers on the continent.
By Jacob Okwii.
In what can be seen as a major turn towards oil production, the government of Uganda has signed an agreement with a consortium that will fund and develop the country’s oil refinery. This is one of the two major upstream oil activities the country has been pursuing in its long drawn oil exploration history. The other is the construction of the pipeline to take crude to the coast for export.
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.”