KAMPALA, Uganda (AFP)--Ugandan President Yoweri Museveni Monday ruled out exporting crude oil and instead invited foreign companies to set up refineries in the country.
"Uganda will not export any crude oil. We must drill it and process it before exporting it. If any one wants to help us develop, they should come and set up a refinery here," Museveni told the 12th Organization of Islamic Conference's Business Forum in Kampala.
In 2006, Canada-based Heritage Oil Corp. (Toronto:HOC) (HOC.T) discovered oil near the border between Uganda and the Democratic Republic of Congo. The company positioned Rukwanzi Island as a strategic drilling point. In May, Tullow Oil PLC (Dublin:TQW) (TQW.DB) said it struck oil and natural in the Lake Albert Rift Basin.
Oil officials estimate there may be reserves of up to 2 billion barrels, most of it under Lake Albert. Drilling is tentatively scheduled to begin in mid-2009.
The 57-nation Organization of Islamic Conference, the world's largest forum of Islamic nations, is set to meet in Kampala from June 18-20. The current OIC chair, Malaysia, wants fuel prices to top the agenda.
-Dow Jones Newswires, 201-938-5500
(END) Dow Jones Newswires 06-16-08 1750 Copyright (c) 2008 Dow Jones & Company, Inc.
