Uganda’s finance minister Matia Kasaija has stated that the establishment of an oil refinery that was proposed in 2015, will be concluded by September this year.
According to ESI Africa, Kasaija said this while delivering his budget speech last week, stating that government has put aside 188 billion shillings ($56 million) in the 2016/17 financial year to be used for the development of its oil and gas field, Oil In Uganda reported.
He added that the allocation of funds will also be utilised in boosting skills and institutions in the sector, particularly operationalising the National Petroleum Authority and establishing the National Oil Company (UNOC).
Land acquisition for the refinery’s development is reported to be 97% complete with 533 acres of land having been acquired in Hoima district for the physical resettlement of the project’s affected persons who opted for resettlement.
According to Kasaija, the Hoima-Tanga crude oil pipeline will be developed as a private investment, to ship Uganda’s crude oil to the east African coast.
Local media reported that President Yoweri Museveni stated that Uganda would start producing oil by 2020.
“By 2020, we shall start pumping out our oil. Even at the low price of $50 per barrel, if we shall be pumping 30,000 barrels per day for the refinery and 170,000 barrels per day for the pipeline, the total will be 200,000 barrels per day that will give us an additional income of $3 billion per year. The government portion of that money will be $2.1 billion, which is 70%.”