Tullow Oil, the explorer with projects on three continents, will start generating 57 megawatts of thermal power in Uganda late next year.
The London-based company will generate the electricity using heavy fuels from a refinery it plans to build at Hoima in northwestern Uganda, Tullow said today in a statement.
It didn't say how much the project would cost. The company will use seven megawatts of power and sell the remainder to the national grid, it said.
"The project is expected to be approved during this year with start of generation expected toward the end of 2009," Chris Perry, the company's investor relations officer, said in the statement.
Tullow, Calgary, Canada-based Heritage Oil, West Perth Australia-based Hardman Oil, Neptune Petroleum Uganda, a subsidiary of the London-based Tower Resources, and the UK-based Dominion Oil Company are exploring for oil in the east African country.
Tullow's refinery will produce diesel, kerosene and heavy fuels for the Ugandan market, while processing 4,000 barrels of oil a day.
Uganda produces 145 megawatts of power at its two hydropower plants against an installed capacity of 380 megawatts, and generates 100 megawatts of thermal power.
Bloomberg
