Muloni: Uganda Plans To Join OPEC By 2020

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In short
According to Muloni, membership to OPEC comes with benefits like stabilization of oil prices among others. She says the Ugandan government took the decision to join OPEC after consultations with other member states including Equatorial Guinea.

Uganda plans to join the Organisation of Petroleum Exporting Countries (OPEC) by 2020 when first oil begins to flow, the Energy and Mineral Development Minister, Irene Muloni has revealed.

 
She disclosed this while opening the 3rd Uganda International Oil and Gas Summit (UIOGOS), saying Uganda wants to benefit from being a member of OPEC to learn from their experiences in the oil and gas exploitation. 
 

 
According to Muloni, membership to OPEC comes with benefits like stabilization of oil prices among others.   She says the Ugandan government took the decision to join OPEC after consultations with other member states including Equatorial Guinea.



There are plans by the Energy Ministry and International oil companies to start producing 200,000 barrels of crude per day by the end of 2020. The production according to the plans will peak at 230,000 b/d in 2023. 


Gabriel Mbaga Obiang Limathe Minister of Mines, Industry and Energy from the Republic of Equatorial Guinea was one of the Speakers at the conference held at Serena Hotel in Kampala. He advised Uganda to consider joining OPEC even when it has not yet begun oil production.
 
 
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He says although there are some disadvantages in joining OPEC, they are outweighed by the advantages. Lima said the Republic of Equatorial Guinea's membership to OPEC has for instance helped to stabilize oil prices.  

The International Oil prices are beginning to drop again as countries increase production.  Lima says OPEC plans another meeting to ensure that the prices don't drop further.  



He says one of the major benefits of being a member of OPEC is that it can help especially in periods when there is crude oil price volatility.


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President Yoweri Museverni and Muloni recently visited Equatorial Guinea, which depends almost entirely on its oil resources. Muloni said there was a lot to learn from there in terms of how oil revenues have been used to develop its infrastructure.

 
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Oil exploration activities in Uganda were equally affected by the drop in international oil prices. According to current estimates, 81.5% of the World's proven crude oil reserves are located in OPEC Member Countries, with the bulk of OPEC oil reserves in the Middle East, amounting to 65.5% of the OPEC total.


OPEC Member Countries have made significant additions to their oil reserves in recent years, for example, by adopting best practices in the industry, realizing intensive explorations and enhanced recoveries. As a result, OPEC's proven oil reserves currently stand at 1,216.78 billion barrels.