PARLIAMENT — Sironko District Budadiri East Member of Parliament Hon. Eng. Julius Nakiyi Muntu has questioned Uganda’s plans to export crude oil, arguing that the move could undermine the country’s ambition to retain jobs and maximise value addition from its petroleum resources.
Nakiyi raised the concerns during a parliamentary session while responding to a presentation on Uganda’s oil and gas developments. He first sought clarity on the security of the reported US$2 billion investment, asking what measures were in place to safeguard the investment and ensure that it delivers the intended benefits to Uganda.
The legislator also questioned why Uganda was preparing to export crude oil when President Yoweri Museveni had previously advocated for domestic refining and keeping jobs within the country.
Nakiyi said the presentation before the committee appeared to indicate that Uganda’s crude oil could begin leaving the country as early as mid-December, raising concerns about whether the current approach is consistent with the country’s earlier plans for domestic value addition.
He further questioned the timeline for the completion and operation of the refinery, estimating that it could take another four to five years before Uganda begins producing refined petroleum products for local consumption.
Nakiyi cautioned that the expected start of crude oil production could create unrealistic expectations among ordinary Ugandans, who may assume that the arrival of crude oil in December means petrol and diesel produced from Ugandan oil will immediately be available on the local market.
He explained that there could still be a lengthy period between the start of crude oil production and the production of refined petroleum products, making it necessary for government to communicate clearly about the actual timelines and expected benefits.
“I don’t know what you need to do because we are very behind schedule on that matter,” Nakiyi said, stressing the need for greater urgency in addressing delays surrounding the refinery and Uganda’s broader oil development programme.
His remarks have added to parliamentary scrutiny of Uganda’s petroleum strategy, particularly the balance between crude oil exports and the need to promote domestic refining, employment and value addition from the country’s oil resources.
