Uganda to opt for public private partnership refinery

Wednesday January 5 2011

By Stephen Wandera & Agencies


Government is planning to develop an oil refinery on a public-private partnership basis when oil production commences, President Museveni has said.

The president said in his New Year message to the nation that the refinery would be developed in phases starting with an initial capacity of about 20,000 to 40,000 barrels a day in 2012 and eventually going up to at least 200,000 barrels by 2016.

"With the prospect of large oil revenues, Uganda will soon be free from external influence in the implementation of our investment programmes," he said. "Government has moved to improve the regulatory environment of the [oil and gas] sector to ensure that it achieves maximum benefit from these resources."

Oil exploration companies have discovered at least 800 million barrels of recoverable oil reserves in Uganda's Lake Albert rift valley basin.

President Museveni said the government will pass new legislation on access to oil and gas rights, regulating exploration and production, refining and gas processing and managing petroleum revenue.


At least 20,000 jobs are expected to be directly generated by the oil industry and another 100,000 jobs generated as a result of the multiplier effect, the president added.