APA-Kampala(Uganda) Uganda leader, Yoweri Museveni on Friday urged East African countries to invest in oil exploration because there are high prospects with more reserves in the region.

He made the comments as he addressedthe 11th ordinary summit of the East African community soon after ratifying a protocol establishing the regions common market at the Arusha International conference centre yesterday.

The President gave an example of Uganda where oil has been discovered in the western part of the rift valley with prospects showing that other oil reserves can be rediscovered in the region.

He said that a team of Ugandan trained oil experts that discovered the country’s oil has told him that other countries which share the same geological set up can have oil.

The President disclosed that he rejected advice from some oil companies who were opposed to the setting up of a refinery in Uganda arguing that the margins between crude and refined oil is negligible.

“This is what they were telling me was correct. Were those countries having refineries doing so on Mother Theresa basis ? he asked.

He explained that he rejected the advice adding, "I know Iran is not popular in some areas, I decided to go there and consult the country’s President who assured me that refining oil was profitable.

“They were dissuading me from putting up one refinery, however, in Iran they have nine refineries and in addition, seven are under construction." He said.

The President disclosed that after the Iranian visit, the same people who were telling him that refining was not profitable changed the story.

"They now agreed with me that I should construct a refinery and it makes money,” he said.

He advised the people of East Africa not to take oil to be more important than human resource.

He gave the examples of Japan which has no mineral deposits at all and agriculture but is richer than Saudi Arabia which has huge oil deposits.

President Museveni said that it is more profitable to invest oil money in infrastructure, human resource development and Information Communication and Technology.

After years of oil exploration, Uganda discovered oil in the country’s western regions, with the oil blocks of Waraga 1, Waraga 2 and Mputa .

An Australian oil exploration company, Hardman Resources Ltd, made the discoveries.

The Ugandan President has said before that his government would begin production and start building an oil refinery.

Describing oil as a blessing for Uganda, President Museveni pledged to use the resource to fund infrastructural development and build human resource in the country.

Oil production is expected to begin soon, with initial output of 6,000 to 10, 000 barrels a day.