Oil discovered in western Uganda – president

Oct 8, 2006 (KAMPALA) — Oil has been discovered in western Uganda after years of exploration, the president announced Sunday, saying he expected production to begin in 2009.

President Yoweri Museveni said the country plans to build an oil refinery, with Uganda initially producing between 6,000 to 10,000 barrels a day.

He did not give details of how the oil will be produced, saying only that Uganda has studied various oil production contracts around the world. The government will use some of the oil to produce electricity, Museveni said.

Thomas Male, a Ministry of Energy official, told The Associated Press Sunday that the three fields in western Uganda where the oil has been discovered have 100 million barrels to 300 million barrels of oil in reserves with 30 million barrels ready for extraction.

That figure would be low compared with other oil-producing countries in Africa. By comparison, Chad produces about 170,000 barrels a day while Sudan produces several hundred thousand barrels a day.

Oil exploration in western Uganda began in earnest in 1989. An Australian oil exploration company, Hardman Resources Ltd. (HDR.AU), discovered oil at three wells in western Uganda in June, Museveni told participants at a national prayer breakfast Sunday.

Museveni said officials were waiting to make the announcement until after a national prayer festival that began Saturday.

(AP/ST)