Uganda should be on its way to a middle income country by the end of 2016, and the country should have solved most of its challenges. President Yoweri Museveni says that once oil production starts, Uganda will solve its energy deficit and be able to independently meet its fuel needs without depending on foreign supply and prices.

Museveni says that 49 oil exploration wells have been completed by different oil prospecting companies licensed by the government. He says 44 encountered oil and gas.

Museveni says that says according to experts, oil that has been confirmed in Uganda can support production of over 100,000 barrels of oil per day for 25 years.

He says Uganda is set to start the construction of an oil refinery and should be able to produce oil before the end of his current five year term as President.

oil drilling in western Uganda

Delivering the state of the nation address on Tuesday, Museveni said his government has completed a feasibility study and found that the oil refinery project is both technically and financially viable. The refinery will take 3-5 years to compelte.

In the next two years, he says Uganda should be able to use her crude oil and gas for electricity generation. The government he says has also extended the exploration for oil to other western Uganda areas as far as Kanungu.

The President says once Uganda starts producing her own oil, fuel crises liek the one currently being experienced will be history. He says the government is to undertake a private public partnership to ensure there are enough fuel reserves in the country. Museveni says fuel companies are also being required to stock fuel for at least 10 working days as a measure against crises when supply is affect

He also revealed that the government continues to license oil exploration and mining companies, with 3, 631 billion shillings accruing from royalties and mineral licenses fees over the past year alone. Royalties alone contributed 2.7 billion of the revenue generated. The highest tax payers here are Tororo cement, Hima Cement and Kasese Cobalt Company, according to Museveni.

Ultimate Media