The oil is now stored in specialised containers or called Butitainers at four locations in the Albertine Graben; Kasamene-1, Ngara-1 and Ngiri-2 well sites in Buliisa District, and Tangi Camp in Nwoya District.
Containers of test crude oil obatined during the driling at Kingfisher operated by CNOOC Uganda Limited Uganda's crude oil is waxy and quickly solidifies on getting to the surface, the reason for a heated pipeline to Tanga, Tanzania.
Government has failed for find
buyers for over 40,000 barrels of crude oil extracted from Uganda’s oil wells
in Bulisa and Kikube districts.
While some Ugandans have alleged
that the government has airlifted some of the crude oil, it is emerging that
all the test crude remains confined in containers because there are no buyers.
The government has since 2015
been trying to get buyers for the crude oil which should be used for industrial
The Directorate of Petroleum
Director at the Energy Ministry, Homey Malinga says no buyers have expressed interest
in Uganda’s black gold.
“That test crude
has been there. But the amount of that crude can’t enable somebody or a company
to establish a system that will take it. We tried to sell it to Hima, they said
they will need to configure their system for cement production” said Malinga
Hima Cement part of has been emphasizing
on the need to use renewable energy sources like biomass to power its cement production.
Malinga reveals that attempt to sell
the crude to companies that generate power has also not been successful. “So
our hope is that if we don’t sell it now, may be in future when the refinery is
there, it will be sued for blending. We blend it with fresh crude” said Malinga
Crude oil has been used in tarmacking
roads. With a number of road being constructed in the Albertine region and generally
in the country, it was hopped that construction of roads that they would use
the stored crude.
But Malinga says the stored quantity may now be enough even
for one road. “Because if you are to
supply 40,000 barrels is not too much. But we tried many options including
disposing it off. And even disposing it off you have to go through a tedious
process” he said.
The oil is now stored in specialised containers or called
Butitainers at four locations in the Albertine Graben; Kasamene-1, Ngara-1 and
Ngiri-2 well sites in Buliisa District, and Tangi Camp in Nwoya District.
The oil in question was extracted by companies like
Tullow to appraise the discovery to determine the extent of the discovery and
the characteristics of the crude oil.