Experts believe that Uganda must search for between US$ 15bn to US$ 20bn in order to become an oil producing country.
Jimmy Mugerwa, the Tullow Uganda Country Manager also confirmed the findings and said they have already concluded the exploration phase, and added that if the production licenses are issued at a faster rate, they expect the development phase to take another three years only, meaning that in 2019, the oil production dates will be announced.
The whole process will involve a number of things, among them; the setting up of an oil refinery, building of the world’s longest continuously heated and insulated 24-inch crude oil export pipeline, and land acquisitions. The oil project will require more than 250MW of power when in full operations to heat the over 1400KM crude oil pipeline and over 1200 heavy duty trucks to transport over 800,000 tons of steel, pipes and perform other logistics.
The US$ 20bn project will also involve setting up of an international airport in Hoima for both passenger and cargo planes, and various road networks.
Mr. Mugerwa said that out of this mega oil investment, Uganda can reap over US$ 63.5bn from the 75% oil sharing agreement arrangement over a 25 year period. This will mean that on average, the government will earn US$ 3.6bn annually.