Kampala — The government is looking for investors to construct an oil refinery in the country estimated at $2 billion (about Shs4 trillion).

This follows the discovery of two billion barrels of oil in a third of the area Tullow oil has explored in the Albertine region.

During an interview with Daily Monitor, the state minister for finance, planning and economic development Aston Kajara said: "We are looking for an investor because we want to export finished oil products. The cost of exporting crude oil is the same if we built our own refinery. If finished, we can have other by-products from oil and be able to create 10,000 jobs," he said adding that the refinery would be able to absorb all the oil.

"When we began, we thought of producing 20,000 barrels a day but we are now looking at between 150,000-200,000 barrels a day."

Speaking during a function to celebrate Tullow's mid-term success last week at Emin Pasha Hotel in Nakasero, the Minister of Minerals and Energy Hillary Onek said Uganda has not yet pumped even one milligramme of oil.

Mr Tim O' Hanlon, the vice president of Tullow Oil African business, said his company has suspended drilling the northern part of block 11 and is currently engaged in a deep deviated well called Nagassa 11, which has the biggest prospect.