Construction of the long-awaited oil refinery in Hoima District has started, according to the Minister of State for Energy, Mr Simon D’ujanga.

Mr D’ujanga said the government in conjunction with Tullow Oil Company from Ireland have started the construction expected to produce 400 barrels of diesel and kerosene every day to cater for the local demand.
“Next year, Kerosene and Diesel will be produced in Uganda. We shall start with heavy oil and if the flow is good then we shall start producing petrol,” Mr D’ujanga said on Friday while opening the National Technology Conference organised by Uganda Institute of Professional Engineers at Hotel Africana.
Uganda is expected to produce its first oil products by August next year. The minister said the plant would also produce 100 mega watts as a by-product to supplement the meagre power supply in the country.
The remarks come at a time when fuel and oil prices are increasing, influencing the prices of both luxury and essential commodities.
“Uganda imports 1.2 million litres of diesel but almost half of it is used for power production. This makes it very expensive as a unit of electricity produced by diesel costs 24 cents,” the minister said adding, “Drought has taught us a lesson, the water is not enough to produce enough energy for the rural and urban markets.”
In the past year, water levels on Lake Victoria have tremendously dropped, which consequently reduced the amount of hydro power production.
He said the Ministry of Energy will soon embark on recruiting staff to work on the processing plant and encouraged local universities and institutes of higher learning to introduce petroleum or oil refinery courses.
“It’s high time our universities and tertiary institutions of learning introduced such courses,” he said. Although Uganda discovered oil deposits in early 2006, the country is yet to enact a policy on oil and gas resources.
However, the Minister of Energy and Mineral Development, Mr Daudi Migereko says the national oil and gas policy will be ready soon with provisions on payment, use and management of petroleum revenues.
(Source: allafrica.com)