Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Uganda aims for commercial oil output by 2016

20 June 2013, 15:42 George Obulutsa

Nairobi - Uganda is aiming for commercial output of oil by 2016 at the earliest, as the landlocked east African nation seeks cheaper energy and funds for infrastructure projects.

Explorers struck oil in east Africa's third largest economy in 2006 and Uganda estimates its crude reserves at 3.5 billion barrels, but wrangling over taxes and the viability of a local refinery have stalled production.

Uganda currently transports all of its fuel - imported primarily through Kenya's Mombasa seaport - in tankers over several hundred kilometres of road. Officials say the method is unreliable, costly and damages roads.

Fred Kabanda, principal geologist at Uganda's petroleum exploration and production department, said a 30,000 barrel a day refinery is expected to be operational in 2016 at the earliest, with output expected to double two years from then.

The third-biggest economy in east Africa aims to build the refinery as a private-public partnership with its neighbours, in exchange for a stake in the facility, he said.

In April Uganda agreed with France's Total and China's CNOOC to build a smaller refinery than it had wanted. The companies favoured a pipeline to export most of the crude via Kenya's Indian Ocean coastline, saying there was insufficient local demand for a refinery of the size Uganda proposed.

Total and CNOOC entered Uganda in 2012, taking up a third each of British explorer Tullow Oil's exploration assets for a total of $2.9 billion.

- Reuters

Join in the conversation on our Facebook page. Also get the latest news by following us on Twitter.


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Victor Tinto
Leave ODM if you are unhappy, Rai...

Leave ODM if you are not happy, Raila Odinga tells Senator. Read more...

Submitted by
Victor Tinto
Former Assistant Minister joins J...

A former Assistant Minister has quit PNU and joined the Jubilee Party. Read more...

Submitted by
Victor Tinto
DP Ruto intervenes as Kerio Valle...

DP William Ruto will visit Kerio Valley to try solve never-ending clashes between local residents. Read more...

Submitted by
Wilson Ochieng
ODM MP chased down by angry Kibra...

Kibra MP Ken Okoth had a hard time in his constituency after angry youth pelted him with stones. Read more...

Submitted by
Wilson Ochieng
Prepare for DP Ruto fight in 2022...

An MP has warned that the Kalenjin Community will not stand back and watch as DP Ruto is duped ahead of the 2022 polls. Read more...

Submitted by
William Korir
Be careful who you deal with, DP ...

Watch out for your political future, DP William Ruto has been warned. Read more...