Kampala — Uganda's early oil production scheme, which was supposed to kick off later this year, has suffered another delay that may push it further back, probably up to 2013.

It has been established that Uganda has commercially viable reserves of at least 600 million barrels. The early oil production scheme was expected to fuel a thermal power generation plant in western Uganda that would put an end to loadshedding and lower power tariffs.

The continuous postponement of the oil production is a result of endless negotiations between the Government and the main oil exploration company, Tullow Oil.

On the one hand, the Government is determined to have the oil refined in Uganda and supply the local market first before exporting any surplus to the region.

On the other hand, Tullow, a relatively small oil explorer, insists that a refinery is not cost-effective. The company wants to push ahead with a plan to build a 1,300km pipeline to Mombasa.

By shipping out crude oil, we forgo cheaper fuel at the pump which would boost the economy as well as the possibility of new jobs with the creation of a petro-chemical industry. We shall give Tullow the benefit of the doubt when analysing their motives but the Government certainly has the national interest at heart in insisting on a local refinery.

The Government has a duty to go beyond narrow commercial considerations and look at the bigger picture of long-term development and self-reliance.