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Six years on, Uganda still fails to find buyers for its crude oil

The crude oil

The crude oil

Government has failed for find buyers for the over 40,000 barrels of crude oil extracted from Uganda’s oil wells in Bulisa and Kikube districts.

While some Ugandans have alleged that the government has airlifted some of the crude oil and sold it already, it is emerging that all the test crude remains confined in containers because there are no buyers.

The government has since 2015 been trying to get buyers for the crude oil used for industrial processes in vain. The directorate of petroleum director at the Energy ministry, Homey Malinga says no buyers have expressed interest in Uganda’s black gold. At today's price of $82p/b that is the equivalent of Shs 11bn worth of waste.

“That test crude has been there. But the amount of that crude can’t enable somebody or a company to establish a system that will take it. We tried to sell it to Hima, they said they will need to configure their system for cement production,” said Malinga

Hima has recently been emphasizing the need to use renewable energy sources like biomass to power its cement production. Malinga reveals that the attempt to sell the crude to companies that generate power has also not been successful.

“So our hope is that if we don’t sell it now, maybe in future when the refinery is there, it will be used for blending. We blend it with fresh crude,” said Malinga

Crude oil is also used in tarmacking roads. With a number of roads being constructed in the Albertine region and generally in the country, it was hoped that the crude would be used for infrastructure development. But Malinga says the stored quantity may not be enough even for one road. 

“Because if you are to supply 40,000 barrels it is not too much. But we tried many options including disposing it off. And even disposing it off you have to go through a tedious process,” he said.

The crude is now stored in specialized containers called butitainers at four locations in the Albertine Graben; Kasamene-1, Ngara-1 and Ngiri-2 well sites in Buliisa district, and Tangi Camp in Nwoya district.

The oil in question was extracted by companies like Tullow to appraise the discovery to determine the extent of the discovery and the characteristics of the crude oil.

Comments

+2 #1 kabayekka 2021-10-05 17:17
That is the common problem of African countries.

They are determined to sell abroad everything they can get their hands on in their own countries, so that they can also accumulate lots of USA dollars in their national treasury! Whether it makes economic sense God knows.

Unfortunately, the world environmental problems just continue to multiply so that the whole world just needs the most valuable currency, which is the dollar, to battle global climate change!
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0 #2 Apollo 2021-10-05 20:13
Now that this information has come to light, samples should be taken to our Universities so that research into and applicable uses can be developed from it.

This what has made USA great: that close collaboration between Government, Private entities and Universities to solve problems for humanity.

We may have little, affordable refineries invented or a whole new Industry developed. When a problem is shared human beings have been found to solve it once they work at it together.
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0 #3 Lakwena 2021-10-06 07:58
After all has been said, done and the hullabaloo; who will be buying Gen Tibuhaburwa's oil?

In other words, we are now stuck with the proverbial and enigmas white elephant.

Wachireba?
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0 #4 Walter 2021-10-06 15:57
We Ugandans are surely dense! You fail to away disposal food to someone simply because it may not be enough?
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+1 #5 Zaitun 2021-10-06 16:00
Fellow citizens, we should not cry over spilt milk. Take this failure to buy the crude oil as good news for the country.

Imagine there had been a hot market for our Ugandan crude oil, with all these money lovers who breathe nothing but money, and would not love to leave a cent by the door-steps, all those oil wells would have become dry due to overexploitation already.

Never mind, time will come when the crude oil will be useful once these mongrels have disappeared from the surface of the earth. Who knows, that is in God's plan to save the country!
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