Uganda President Yoweri Kaguta Museveni has appealed to the Uganda oil exploration companies to set up an oil refinery in the country so as to create jobs, address the problem of high oil prices and fuel shortage in the country.
Uganda boosts of at least 1 billion barrels of oil, discovered recently in the Western Uganda Lake Albert basin.
Commercial drilling of the oil which is supposed to start in early 2011 but, still hampered by disagreements between the UK based Tullow Oil company over the capital gains tax with the government of Uganda.
The Uganda Government insists that the oil company must pay the taxes to allow the people of Uganda benefit from its recently discovered oil resource.
Tullow Oil owns one block and co-owns the other two with London-listed Heritage Oil Company.
Tullow Oil wants to take over the stakes of Heritage Oil and then bring on Total and Cnooc in a joint operating venture for the development of the oil fields so as to attract investments to enable the start of commercial oil drilling and the establishment of oil processing infrastructures like the oil refinery and oil pipeline to the Kenyan Port of Mombasa.
Experts believe that if the revenues got from the Uganda oil are capable of propelling the country out of its economic doldrums if well managed by the Uganda Government.
Solomon Akugizibwe, Ultimate Media