Uganda discovered commercially viable oil in the great albertine region in 2006 but has not been able to get it out of the ground. The country, however has taken the necessary steps to see start oil production.
This oil, once it comes out of the ground is expected to turn around the fortunes of the impoverished country which over the years has had substance agriculture as its main source of revenue.
Because of this importance, questions of how money that will come out of oil and gas will be spent has risen a couple of times within public domain and debate but with little answers.
However in his new year’s statement, President Yoweri Museveni gave a glimpse of how this much awaited money will be used.
Uganda has discovered an estimated 6.2 billion barrels of crude oil in Bunyoro and parts of West Nile, areas that make up part of the Albertine area.
More exploration is going to be undertaken for more possible discoveries. According to ministry of energy and mineral only 40 percent of albertine region has been explored.
President Museveni in the statement in which he wishes his countrymen a year of love, unity and prosperity reiterated that his government’s petroleum plan is to build a 60,000 barrel per day refinery, expandable to 120,000 barrels per day.
He added that apart from getting petroleum, diesel and kerosene for aviation fuel, the residuals will feed the petro-chemical industries so as to produce plastics, fertilizers and pharmaceuticals.
Some of the oil will be exported through the pipeline, he said. “Even if we are to sell only 120,000 barrels per day, according to a price of US$60 per barrel, that will give Uganda an additional income of about US$ 3 billion.”
“This money will be dedicated to infrastructure, science innovation and some of the high level science education institutions. It is considerable. We have been doing so much with so little. What will happen now that we are getting quite a bit of additional money?” the President questions.
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