Uganda speeds up oil production

Uganda is fast-tracking oil exploration and production in order to solve the fuel shortage, the energy minister has said. Daudi Migereko said as long as Uganda depends on Kenya for imports, the fuel shortages will continue.
"The decision, which the Government has taken to fast-track oil production through the Early Production System is the sustainable solution to overcoming disruption in supply," he said.

The minister pointed out that there was a general shortage of petrol in East Africa, but the diesel supply was relatively okay.
"We are looking at it as a medium to long-term strategic solution to transforming our economy," Migereko said. "The exploration and production programme of oil will not stop. Uganda must stop depending on imported petroleum products. It is expensive, unreliable and not controllable."

He said the public should use fuel sparingly as the Government continues negotiating with Nairobi to have fuel depots in Kenya open for longer hours to enable Ugandan transporters work 24 hours.
Migereko said the fuel shortage was a result of problems with the Kenyan oil pipeline, which is under repair. The introduction of the three-axle weight limit for trucks passing through Kenya from October 2008 makes fuel tankers carry about 35,000 litres per trip instead of the previous 42,000 litres.

Unfortunately, he said the tankers were paying the same amount of taxes. Migereko also blamed the delays in delivery of fuel to congestion at Mombasa.
The freight and insurance charges on the high seas have also gone up, he said, due to piracy at the seas. He said the Government had asked Rift Valley Railways to deliver fuel to Uganda and oil companies to use the Tanzanian route.