The government has dismissed rumours that oil production has already started in western Uganda and that some oil companies and government officials are already secretly benefiting from oil proceeds.
The Permanent Secretary in the Ministry of Energy and Mineral Development, Kabagambe Kalisa says that oil production has not started and will commence in 12-18months from 2012.
While appearing before the adhoc parliamentary committee on oil Tuesday morning, Kalisa said the government and oil companies are currently carrying out a testing program intended to understand how the oil will be produced.
He explained that while some oil has been extracted, it is being stored for testing and will sold later to cement factories and power generation firms.
The PS says the supply of crude oil to the companies will be the second phase in about a year and half, before the government embarks on the 3rd phase of oil production with construction of a refinery being planned to start in three years.
He says the government is planning to start with a small refinery to produce about 200000 barrels of oil per day for the local market as the oil companies and government to develop capacity.
Kalisa says within 5years, the oil refinery will be able to produce 60000 barrels of oil per day which will be targeted at the regional market.
This, he said will be expanded to a production capacity of 12, 0000 barrels of oil per day in ten years when the country should start exporting oil on the global market.
Ultimate Media