In a situation mirroring low confidence in the global oil market, a Russian-led consortium investors, RT Global Resources, has pulled the plug on the highly publicised oil refinery project in Uganda, according to newswire, All Africa.
With RT Global Resources’ withdrawal, the government of Uganda is now desperately looking for a reliable investor for the project, which is scheduled to be kick-started mid-2017.
This is of big concern to Ugandans, who are eager to see petrodollars improve their standard of living. Uganda is a ranked as a lower-income country, where majority of citizens merely survive on less than a dollar a day.
A decade since the discovery of massive onshore gas and oil reserves in Westen Uganda, production is yet to take off. There is about 6,5bn barrels of crude oil confirmed so far, of which about 1,7bn barrels is ready for production.
Economists have been raving about the knock-on economic opportunities that oil production will bring to the country.
The government considers revenue from oil production as one of the means through which the country will realise its plans to achieve middle income status by 2020.
In most oil-producing countries, investors are not keen to pump funds into new projects due to low prices which have persisted for the past two years.
Meanwhile, as it looks forward to production of the first barrel, the government is passing laws to create an enabling environment for the oil industry to thrive.