A one-square kilometre oil refinery will be built in Kaiso-Tonya wildlife reserve, Hoima district before the end of the year despite concerns by environmentalists.
This was disclosed by Peter Javis, a senior manager of Tullow Uganda, after energy state minister Kamanda Bataringaya recently toured the area proposed to house the early production scheme.
The tour was organised ahead of a public hearing on the environmental impact of the project.
The oil extraction scheme is pending approval from the National Environment Management Authority, expected by end of August.
Bataringaya said the refinery would help to add value to oil, from which diesel, paraffin and electric power of 85-100 Mega Watts will be produced.
"We find this more viable because it has four wells," Bataringaya said. "It is not cost effective to take the refinery far from the production wells."
He was speaking to a team of environmental officials led by Maria Mutagamba, the environment minister, who was accompanied by MPs from the natural resources committee.
Officials of Tullow Oil said the refinery would cover one square kilometer, although the total area of operation is equivalent to the size of 15 football fields.
Mutagamba wanted to know whether the expansive areas around the oil wells devoid of grass could be restored.
NEMA boss Dr. Aryamanya Mugisha said the oil company was working with his agency and the energy ministry to minimise pollution.
"There was harmful waste that was produced during exploration, which Tullow was required to incinerate at Nakasongola."
Mugisha said the company had hired field experts to monitor the environment and work with local communities to guard against environmental destruction.
But Achilles Byaruhanga, the executive head of Nature Uganda, protested the establishment of the oil refinery inside the park, saying it would undermine the ecology in the park and it was illegal.
Isaiah Onzi of the World Wildlife Fund for Nature also said the ecological implications of locating the refinery in the park were being underplayed.
"The Government and the developer are over-emphasing the economic benefits and not paying attention to the ecological impact on the park."
The tour turned dramatic when about 500 locals from the nearby fishing village turned up with containers expecting to be given free oil. They were told to wait for about a year when extraction begins.
The permanent secretary in the energy ministry, Kabagambe Kalisa, said oil exploration had covered less than 20% of the area that is suspected to be containing the resource.
He said more exploration was expected to continue around Lake Albert up to Nimule in West Nile region.
A report on the environment impact of the project indicated that water would remain safe, fish harvests would not be affected and that the air would remain pure.
The report, compiled by researchers, however, noted that some animals may move away because of the noise and fewer tourists would visit the area.
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The researchers recommended that Tullow works with the Uganda Wildlife Authority and other groups to develop a conservation management plan.
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