Govt in secret search for oil refinery site
Oct 19, 2010
Uganda is silently searching land to build a proposed 200,000 barrels per day oil refinery, a tactic that strives to avoid speculators from hiking prices and making the project expensive.
BY IBRAHIM KASITA
Uganda is silently searching land to build a proposed 200,000 barrels per day oil refinery, a tactic that strives to avoid speculators from hiking prices and making the project expensive.
This is after studies confirmed the economic and financial viability of the project. The report, which was conducted by Foster Wheeler Energy, a UK-based firm, has been submitted to the Government.
“There is market for the products that will be refined as demand is increasing with a growing population not only in Uganda, but also in Southern Sudan, DR Congo, Rwanda and Burundi,†Bright Irumba, a geologist in the energy ministry’s petroleum and production department, said.
He was guiding a delegation from the World Wildlife Fund for Nature on a field trip to the Albertine Rift, where oil and gas have been confirmed.
The delegation wanted to learn and share experience on Uganda’s oil success.
“We are looking for land but we do not want people to know where the refinery is located because prices of land will shoot up.
“We are doing it quietly,†Irumba disclosed. He explained that operational and environmental costs of the refinery were manageable since the benefits “are really very high.â€
According to statistics, refining crude oil locally requires about $5.5b, while exporting the hydrocarbon could cost about $11b.
Apart from the low costs involved, producing the oil and gas locally is more rewarding because it will provide direct and indirect jobs to Ugandans, easing the high unemployment rate.
Besides meeting the local energy demands for the major oil products –kerosene, aviation fuel, diesel and petrol –there are also other by-products from oil that can be used in building roads, and making various products like plastics and jellies.
Irumba pointed out that the refinery is expected to process Uganda crude oil for domestic consumption and export.
Uganda is silently searching land to build a proposed 200,000 barrels per day oil refinery, a tactic that strives to avoid speculators from hiking prices and making the project expensive.
This is after studies confirmed the economic and financial viability of the project. The report, which was conducted by Foster Wheeler Energy, a UK-based firm, has been submitted to the Government.
“There is market for the products that will be refined as demand is increasing with a growing population not only in Uganda, but also in Southern Sudan, DR Congo, Rwanda and Burundi,†Bright Irumba, a geologist in the energy ministry’s petroleum and production department, said.
He was guiding a delegation from the World Wildlife Fund for Nature on a field trip to the Albertine Rift, where oil and gas have been confirmed.
The delegation wanted to learn and share experience on Uganda’s oil success.
“We are looking for land but we do not want people to know where the refinery is located because prices of land will shoot up.
“We are doing it quietly,†Irumba disclosed. He explained that operational and environmental costs of the refinery were manageable since the benefits “are really very high.â€
According to statistics, refining crude oil locally requires about $5.5b, while exporting the hydrocarbon could cost about $11b.
Apart from the low costs involved, producing the oil and gas locally is more rewarding because it will provide direct and indirect jobs to Ugandans, easing the high unemployment rate.
Besides meeting the local energy demands for the major oil products –kerosene, aviation fuel, diesel and petrol –there are also other by-products from oil that can be used in building roads, and making various products like plastics and jellies.
Irumba pointed out that the refinery is expected to process Uganda crude oil for domestic consumption and export.