Uganda: Museveni Says Uganda’s Refinery Remains a Priority

President Museveni emphasised that Uganda’s planned oil refinery remains a priority alongside the East African Crude Oil Pipeline (EACOP).

He said refining crude oil locally would help reduce the cost of petroleum products by eliminating some of the transportation and transit costs associated with importing refined products.

“Our refinery will be one of the most profitable because, first of all, it’s far from the ocean and it does not have the transportation cost which imported oil has. When we refine our oil here, you don’t pay transit charges,” he said.

Museveni made the remarks on Wednesday as he unveiled “Pearl Sweet” as the official name of Uganda’s crude oil, ahead of the country’s anticipated first oil production.

This was during a visit to the Kingfisher Oilfield in Buhuka, Kikuube District, where the Kingfisher Central Processing Facility (CPF) reached mechanical completion, marking a major milestone in the development of the oilfield and Uganda’s transition towards commercial oil production.

Uganda plans to develop a 60,000-barrel-of-oil-per-day refinery at Kabaale, Buseruka Sub-County in Hoima District.

Alpha MBM Investments, an investment firm from the United Arab Emirates (UAE) and led by Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai Royal Family is the lead partner in the oil refinery project.

Speaking on Wednesday, Museveni said Uganda would save substantially by refining some of its crude domestically rather than transporting it to the Tanzanian coast.

“When we pump our crude to Tanga, we pay $12.77 per barrel just for transport. When we refine our oil here, we don’t pay that money. We shall no longer spend $2 billion importing petroleum,” he said.

“You can export some of the crude, but the refinery must get priority. That is what is in our agreement,” he added.

By Nile Post.