Labours to discover oil in Uganda have gained impetus following the detection of a carbondioxide-free oil well at Mputa II, Kaiso-Tonya on Lake Albert by Hardman Oil and Gas Company, a Ministry of Energy official has said.

The pertinent tests on the oil were conducted last Saturday. The oil is now at appraisal level to assess its environmental impact, establish its flow in the reservoir and pipeline construction and storage.

Ernest Rubondo, the assistant commissioner in charge of petroleum in the Ministry of Energy, exposed that the oil contains hydro-carbons that certify its purity as the standard commercial fuel.

Rubondo was addressing an energy stakeholders’ forum at Grand Imperial Hotel in Kampala on Thursday.

He commented that the local petroleum sector is promising despite the international crisis. All indicators show that there is a chance to get commercial wells in plenty and this is encouraging.

He added that many oil wells were discovered in the Lake Albert region but they contained carbon-dioxide, which is a negative element in petroleum exploration.

He did not specify the exact time-frame when drilling starts, saying, “it is a transitory process but on fast track.”

He named Waraga I, Turaco I, Turaco II, Turaco III, Mputa I and Mputa II as the current oil exploration sites. Rubondo also said Neptune, Heritage, Energy Africa and Hardman were the firms licensed to drill and explore the oil. He explained that another well, Turaco III, was at appraisal level and the Government had injected $200,000 in surveying and mapping potential oil fields.

He said drilling firms would require between US$3m and $8m to install oil facilities and begin production. He said Uganda spent $250m on petroleum products last year and the consumption rate was increasing at 6% per day. A barrel of oil is currently about $72m.

Uganda tourism packages have been at a higher rate than her other competitors in East Africa because of the fact transportation to the destinations is high due to the high costs attached to fuel. Many tourists have been foregoing Uganda as a tourists’ destination because of the high costs attached to its tourism packages which is as a result of high fuels costs. Once Uganda gets an Oil firm, it will be able to market its tourism destinations at a competitive rate.

By TANAH