President Yoweri Museveni of Uganda has said that the crude oil from Uganda will not be exported. This was during his key address speech at the OIC Business Forum meeting at Imperial Royale Hotel Entebbe.

Uganda is expected to start the drilling of oil by next year. The rise of oil prices and food is expected to boost Uganda’s economy which is predominantly agricultural and will now start manufacturing oil.

Malaysia is also expected to discuss the issue of escalating fuel prices at this very conference.

Oil explorers in the western part of Uganda have discovered yet another reserve that could help to boost the economy of Uganda.

The Irish explorers Tullow oil announced in a press statement that the natural gas was worth about USD 98,000 per day! The rate of flow is 14 million cubic feet per day. The expected explorationand drilling of oil could even start next year thus saving Uganda from the current power shortage in the country.

Uganda is located in East Africa and currently described as a safari destination where one can see the gorillas in Bwindi and other attractions. The shift to oil production and gas could strengthen the economy in the shortest run possible.

Uganda Oil

This week, Heritage Oil and Gas Company will hold negotiations with Government to construct a refinery that will supply the East African community with petroleum products, said a senior company official.

The oil company last week announced the biggest oil discovery at King Fisher well in Bunyoro with an estimated flow rate of 14,000 barrels of oil per day.

The company’s country director, Bryan Westwood said, “We can not accelerate the production time to earlier than 2009, we have however, considered the possibility of a mini refinery because the cost of constructing a pipe line is much higher.”

He said this when addressing the Vice-president, Prof. Gilbert Bukenya, during his visit to the oil site in Buhaguzi sub county, Hoima district on Sunday.
He added that the min refinery would be able to produce paraffin, diesel, aviation oil and heavy oils; something he emphasized would enable Uganda supply the entire East African region with fuel as well as the exporting country becoming self-sufficient.

The Oil Company is currently undertaking the procedure of acquiring a bigger Rig that can drill deeper.

The permanent secretary in the ministry of Energy, Kabagambe Kaliisa, said Uganda consumes 12,000 barrels of petroleum products per day, at the present and clarified that the combined discovery of approximately 26,000 barrels a day greatly surpasses the country’s consumption.

The Vice-president urged oil companies to speed up the discovery exercise so that the government can generate money out if it to fight poverty.

The minister of energy, Daudi Migereko has disclosed that more oil has been found in Lake Albert, in the kingfisher area. This will supplement the over 6omilion barrels of oil found in kaisotonya.

The commissioner for petroleum exploration, Reuben Kashambuzi exclaimed that it was a beautiful prospect and that the details could only be revealed after meeting with the exploration company and the ministry of energy.

During a meeting held to negotiate the extension of the proposed Kenya-Uganda oil pipeline to Kigali, Migereko unveiled the discovery to Rwanda’s minister foe energy and communication, Albert Butare. The pipeline will be extended to DR Congo and Burundi as well.