The Minister of State for Mineral Development, Peter Lokeris has revealed that Uganda will construct an oil refinery within the oil producing region of mid western Uganda to process the huge oil deposits confirmed in the area.

oil drilling in western Uganda

Oil prospecting companies led by Tullow oil have confirmed commercially viable oil deposits in Uganda’s Albertan Rift basin, with the issue of the oil refinery and where it is to be constructed among the latest sticking points.

While the government led by President Yoweri Museveni has been in fvaour of constructing a refinery within Uganda to process the oil, Tullow which bought the interests of the other major player, Heritage Oil has been advocating for the construction of an oil pipeline to Mombasa so Uganda’s oil is refined there at sea for easy export.

Speaking at a consultative meeting on petroleum exploration, Lokeris said the government of Uganda has already made the decision to construct the oil refinery at Kabale, Buseruka Sub-county in Hoima district.
He says the government’s decision follows several consultations and research by Foster Wheeler Energy Limited, a UK based firm, which recommended that Uganda had the potential of owning a oil refinery plant.

Lokeris says construction of the oil refinery will start in 2011 and is expected to be completed in three years, and that Uganda is currently sourcing for the huge funds to undertake the task. He says it will cost over 4.6 billion US dollars to construct, 2.05 billion US dollars for the refinery itself, and 2.75 billion US dollars for the processing plant.

The minister says once complete, the oil refinery will produce about 60,000 barrels of oil per day, meeting Uganda’s current 18,000 barrels of oil per day while the surplus will be exported to neighboring countries Rwanda, Democratic Republic of Congo, Burndi, Southern Sudan, Kenya and Tanzania.

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