Here is the most coveted document on Uganda’s oil industry, the country’s oil potential and key investment opportunities and strategies at both micro, national and regional levels.
The government of Uganda hired Swiss Engineering and Construction company Foster Wheeler Energy Limited (FWEL) in early 2011 to undertake a study of Uganda’s oil potential. The key goal of the assignment was to advise the government on whether to strategise on constructing a refinery or an oil pipeline to export crude oil.
According to the Ministry of Energy and Mineral Development, the study was is in line with the objective four of the National Oil and Gas Policy for Uganda of promoting valuable utilisation of the country’s resources.
The aim of the study, among other things, was to recommend the optimum size, configuration, location, cost and financing options of the refinery, the attendant infrastructure and market for the refined products, as well as preliminary environmental assessment of the possible impacts of refinery development.
Foster Wheeler successfully completed the study and presented a report to the Ministry of Energy and Mineral Development in August 2010.
It is by now no secret that the study recommended that it would be more viable for Uganda to build an oil refinery, with a 150 000-bl/d refinery facility in Uganda suggested.
The study followed pressure from many oil companies preferring Uganda to use the Kenyan refinery in Mombasa to process the oil from western Uganda.
Other than the technical benefits of avoiding transporting heated crude over such a long distance from western Uganda to Mombasa, the consultants pointed at the direct employment opportunities that will accrue from the refinery, saying it will boost Uganda’s economy by saving over $1bn annually.
The study report weighing the different options as well as the investment opportunities in either options is the key document on Uganda’s oil industry. No wonder the government is selling a copy of the report at more than $150,000 and you have to sign an agreement not to divulge the contents there in.
We bought a copy from a 3rd party and are availing it to you so you can take more informed decision as regards Uganda oil sector and potential.