Swiss engineering company Foster Wheeler has conducted a feasibility study that has confirmed that constructing a 150 000-bl/d refinery facility in Uganda will be a viable venture.

The feasibility study suggests that the refinery will create direct employment opportunities, boosting the East African country’s economy by saving over $1bn annually, the Creamer Media’s Engineering News reported.

The feasibility study findings will help the government to find out funds for the project, expected to cost $2bn.

Libya, Iran and China have shown their interest to team up with Uganda for building up the facility.

Some oil companies have opposed to construction of the facility, preferring Uganda to use the Kenyan refinery in Mombasa.

The study, which funded by the Norwegian government, confirms that using the Mombasa refinery can be expensive as $1.7bn is required to construct an oil pipeline from Uganda to Mombasa.

If Uganda opts for a mini refinery, with a capacity of 15000 bbl/d, which is Uganda’s daily consumption rate, the facility would cost $1bn, the report said.