Venture to build lubricants plant in Uganda

Dec 02, 2009 01:00 AM

Victoria Candles, a local trading company, is to form a joint venture with Arabian Lubricants. The new company is to construct an oil refinery worth Shs 44 bn at Nalukolongo on the outskirts of Kampala and will create at least 400 jobs.
"We are going into a joint venture with Arabian Lubricants to expand our business both in candles and lubricant oil products. Over 400 more jobs will be created for both skilled and unskilled Ugandans," Hajj Lubega Sseguya of Victoria Candles said at a meeting with Arabian Lubricants officials at the plant offices in Kampala.

Lubega said the Uganda Investment Authority (UIA) has cleared the refinery and licensed its operations to begin this year.
"We expect to complete the project in five years, it will produce at least 60,000 litres of oil every day for sale in the local market under the brand name-Nation Oil," Hajj Lubega said. The factory will use "base oil" (SE50) to produce blending oil; a product used in factory machines, electric transformers, diesel and petrol motor engines. He said the team from Arabian Lubricants is here for a feasibility study and urged the government to offer tax exemptions and petroleum training courses to their employees to prepare them for work in the petroleum exploration sector. Arabian Lubricants boss Mr Murali Duran Mair said an agreement will be signed soon after modalities about shareholding are determined.

The government has already said it will build an oil refinery following the discovery of commercial oil deposits in the west and north-west parts of the country.
Early this year, Energy and Mineral Development Minister Hilary Onek, said government plans to gradually reduce its dependence on imported oil.

Source / AllAfrica.com
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