RSS   Newsletter   Contact   Advertise with us

Uganda to start oil production by early 2018

Share on Twitter Share on LinkedIn
Staff writer ▼ | March 18, 2015
Uganda is confident it will get crude out of the ground by early 2018 and start feeding it into a proposed refinery as it seeks to become a regional energy hub, government officials said.
Uganda oil
Oil industry in Africa   Uganda set to be a regional energy hub
The government and Russia-based RT Global Resources have started negotiations about the start of construction of the $2.5 billion refinery, energy and minerals minister Irene Muloni told Platts.

“The negotiations have started in Kampala city to conclude the project agreements to the satisfaction of both parties and Kenya has already acquired a 2.5 per cent stake in Uganda’s refinery,” Okello Oryem, minister of state for international affairs, said separately.

Last month, RT Global Resources won Uganda’s contract to build and manage a 60,000 b/d refinery in Hoima district.

Regional states in the East African Community asked Uganda last week to expedite formation of a national oil company and refining subsidiary as prerequisites for a special purpose vehicle to implement the refinery project.

Although analysts have cast doubt on the viability of Uganda’s refinery project, Muloni said it remains viable and she expects global crude prices to rebound by the time production starts.

She said oil production licenses for Tullow Oil and Total would be issued in a few weeks to allow the two companies to prepare wells.

“We are very close to grant Tullow Oil and Total production licenses since we have OK’ed most of their field plans – in a month’s time, we could give them,” Muloni said.