KAMPALA, May 12 (Xinhua) -- Tullow Oil, an Irish company exploring for oil in western Uganda, has set up a team to fast-track commercial oil production in the East African country, a statement said on Tuesday.

    The London-based company said in a statement posted on its website that priority is being given to early phases of production.

    "An integrated project team has been set up to plan the development of the discovered resources with consideration being given to early phases of production," it said.

    The Ugandan government had expected to see early oil production late this year after the establishment of a mini-refinery which would process the crude oil into heavy fuel and other products to meet domestic demand.

    The Tullow statement, however, did not give a timetable for the early production as government official said earlier the production was not likely to start this year.

    So far, Tullow has made discoveries of over 600 million barrels and the potential of over one billion barrels as the well are ready for commercial production, the company said.

    The early production of fuel products is expected to offset thecountry's enormous fuel import bill of millions of U.S. dollars annually and to boost domestic power production to address the power shortage restraining the country's economic growth.