Refining of Uganda’s oil will start in 2009, the Minister for Energy and Mineral development has said.
Addressing guests at a Kobil Uganda’s dealers cocktail held at Imperial Royale Hotel in Kampala on December 7, Mr Daudi Migereko noted that refinery of Uganda’s oil and the pipeline are the real solutions to petroleum supply challenges in Uganda.
“This year, 2007, has been very challenging, with petroleum prices hitting a record high of $100 per barrel, the problems with the oil refinery at Mombasa as well as the limited capacity of the Mombasa-Eldoret to Kisumu pipeline,” Mr Migereko said.
Mr Migereko, however, assured petroleum dealers that it was incumbent on them to survive the current turbulence in order to be around to exploit the opportunities come 2009 when Uganda start tapping their own oil.
Oil reserves are under exploration in western Uganda and it is highly expected that Uganda will be able to produce petroleum products in the next few years.
Kobil Uganda’s General Manager, Mr Daniel Segal commended the government for creating an environment in which they have been able to invest and grow for the last ten years.
Mr Segal appealed for government intervention during the upcoming Kenya elections to enable uninterrupted oil supplies.
Kobil hopes to ensure regular supplies of their LPG brand K-gas by constructing their own filling plant at their depot in Nalukolongo by June next year.
Mr Migereko said until the construction of the oil pipeline, contracted to Tullow oil, which officially starts in April next year, the petroleum suppliers have to be proactive to ensure supplies.
Mr Migereko also commended petroleum distributors for ensuring regular supplies during the recently concluded Commonwealth Heads of Government Meeting and appealed to them to ensure availability of the products during the Christmas and New Year period.