Uganda wants Kobil to join the search for oil in the country. This follows a successful operation of the company in the region's oil sector, said officials in the Ministry of Energy.

The officials told The EastAfrican last week that five areas had been identified for exploration in some parts of western Uganda, but the ministry lacks resources to start research into finding the quantity and quality of the reserves. 

Full exploitation of this sector would boost the economy and reduce the country's reliance on donor funds, the officials said, adding that it would also create employment and save the millions of shillings the country spends on oil imports. Uganda spends over $100 million a year on oil imports.

The minister said that while the region's governments boast of working on the East African Community (EAC) and regional co-operation, Kobil is already making the mark by being a major regional player in the oil industry. 

According to the minister, Kobil, which is one of the several companies to join the country's lucrative oil sector, has a petrol station in all the major districts in Uganda. Other players, who have joined the sector in the past five years, include Jovena, and Petrol Uganda Ltd.

Mr J. I. Segman the Chairman Kobil Uganda group and Group Managing Director Kenol/Kobil said that Kenol/Kobil had adopted an expansion plan to develop the whole region.

At present Kobil has invested in Uganda, Kenya, Tanzania and Rwanda. "Besides being the second largest market leader in Kenya and having 8.2 per cent market share in Uganda, Kobil has recently launched operations in Rwanda," said Segman.

Meanwhile last week, the Indian High Commissioner to Uganda, Mr. Deepak Ray, last week submitted an oil exploration proposal from an Indian parastatal, Oil and Gas Commission of India, to the Energy ministry.

The proposal sought to introduce an Indian firm and seek opportunities for investment in oil exploration and government's rural electrification program.