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Government Plans

Government’s policy is to refine in-country so the refinery should be in place before commercial production is undertaken. The government  has undertaken a feasibility study for the development of a refinery in the country.  The study  undertaken by Foster Wheeler Energy Ltd between December 2009 and July 2010 and recommended the development of a refinery in the country and the report has already been approved by Government.

The proposed area for the oil refinery is in Hoima District next to the drilling area and a bit away from the major consumption area Kampala. The refinery is estimated to cost a between USD 2bn –US$4bn.  The government plans to have a  refinery with  a maximum output of 120,000 barrels per day for it to be  viable and  attractive  to investors. The government plans to take over a 40 % stake in the project and with the private investors contributing the remaining of 60%.

In the region Kenya is the only country with an oil refinery and Uganda will become the second country in East Africa with a refinery.

The drilling companies preferred option is export crude oil as fast as they can to get their returns as earlier as possible.

Uganda‘s government stand is to process crude oil in Uganda as many industries which depend on the products will develop hence creating employment. It has started the process of searching for an advisor to help it secure financing for a planned refinery to process the crude oil.

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