Uganda Woos New Partners for $4bn Oil Refinery.

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According to a top executive at the government regulator, Uganda has started discussions for the construction of a potential 60,000-barrel-per-day oil refinery project with unnamed partners from Africa, the Middle East, and China.

The decision was made in spite of the $4 billion refinery project being abandoned by the Albertine Graben Refinery Consortium (AGRC) in June 2023. AGRC was unable to fulfill the deadline for a final investment decision because it was unable to obtain funds for the project.

The partnership lost its ability to build the refinery as a result, and the Ugandan government was obliged to start from scratch.

Uganda Petroleum Authority Legal and Corporate Affairs Director, Ali Ssekatawa said that the Uganda National Oil Company will continue to advance the development of the refinery project while the government looks for a strategic project partner.

The Director said the next steps would be announced within the next three months. Ssekatawa stated: “There is a lot of appetite and interest in developing the refinery.”

He confirmed that talks have taken place with Algerian state-owned company Sonatrach. Discussions have now also been initiated with several interested parties from Africa, the Middle East, and China.

Ssekatawa added: “The preferred option is the Uganda National Oil Company working together with another national oil company to take forward this project.”

AGEC has already completed front-end engineering and design work, as well as environmental impact assessments for the proposed project.

Furthermore, most of the land has been acquired and cleared to build the refinery and associated pipelines, Ssekatawa said. The refinery is due to be built on a 29km² area in Kabaale Parish in Buseruka Sub-county, Hoima District.

AGRC includes General Electric’s Oil and Gas division, India’s YAATRA Ventures (US), Intracontinent Asset Holdings, and Italy’s Saipem.

 

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