Speaking at Serena conference centre,
yesterday during the state of nation address, Museveni said the 3.5 billion
barrels of petroleum found represents only 40% of the potential area stating
that exploration in the rest of the area is still ongoing.
According to Museveni, government negotiations with the oil companies had delayed because of contentious clauses which were successfully resolves with the oil companies on the Memorandum of Understanding.
“We can now proceed to negotiate on the details with the oil companies” Museveni said. Majority of Uganda’s crude oil will be used in the refinery to produce final products, exported as crude and part used to generate electricity to help in the extraction of more crude oil.
President Museveni revelation comes shortly
after, after officials from Petroleum exploration production and development
(PEPD) earlier reports had showed that four of the six shortlisted firms have
submitted detailed proposals to Government as lead investors for the for the
development of the 60,000 barrels per day (BPD) oil refinery and related downstream infrastructure in the country.
Museveni stressed that the high quantities of gas, will be used in steel manufacture, using the huge volume of iron-ore deposits in the Kabale-Kanungu areas and in the Sukuru hills near Tororo. Apart from oil and gas, the government has conducted exploration in many part of the country and discovered several minerals including Iron-ore, phosphate, cement, Aluminium clay, copper, cobalt, wolfram, Tin and Gold
Athur Larok, the executive director action aid said little emphasis has been placed in the oil sector development and refinery development plan as the president focused more on agriculture and ICT yet all these sectors cannot move on successfully without an efficient power supply.
However, Irene Mulon, the state minister of Energy and Mineral development emphasized that government is ploughing more income into the energy sector which will in turn be used to boost the other sector of the economy like the building of the green resources, roads, health and education.