June 24, 2008
Uganda Begins Construction of Refinery, Curbs Fuel Exports
The Ugandan government has commenced construction of its only refinery and has also made it clear that it will restrict exports of domestically produced crude oil, reported PetrolWorld.
The government is planning to drill, process and refine crude oil for domestic usage, hoping to create new economic opportunities that come as a result of such industrial activity.
Ugandan president Yoweri Museveni was quoted by PetrolWorld as saying that Uganda will not export its crude oil as it will result in loss of revenues.
The landlocked country has no ports for shipping volumes of crude oil or refined products and has to depend on its neighbors, Kenya or Tanzania.
Uganda's energy minister, Daudi Migereko, said that if oil production reaches a level where export makes economic sense, the flow in the under-construction oil pipeline from Eldoret, Kenya, and Kampala, Uganda, will be reversed to allow for exports.