Uganda Oil Refinery Investors ‘About To Make Final Investment Decision’ — Ministry

The decision requires the start of work on the infrastructure connected to the plant, such as a refined products pipeline, according to a budget policy document.

A consortium selected by the government of Uganda for the greenfield oil refinery project is nearing Final Investment Decision, officials in the ministry of energy and mineral development said.

After a back and forth search and haggling with a series of investors, Uganda in August 2017 awarded the close to $4 billion dollar project to a consortium led by General Electric of the United States and Jk Minerals Africa.  Other members of Albertine Graben Refinery Consortium (AGRC) are (i) Yaatra Ventures LLC, (ii) Intracontinent Asset Holdings and (iii) Saipem SpA of Italy. The government of Uganda and other investors will take up 40 percent in the project.

The decision requires the start of work on the infrastructure connected to the plant, such as a refined products pipeline, according to a budget policy document.

The government will hold a 40% stake in the project while the investors’ club will hold up to 60% in the project.

The ministry is seeking government funding of 100 billion shillings ($27 million) in the 12 months through June 2021 for that associated infrastructure. The plant, which will be able to process 60,000 barrels-a-day, will initially operate at about half of that capacity.

Uganda, East Africa’s third-largest economy, discovered commercially viable oil deposits in 2006 and plans to start production in 2022-23.

The refinery will process crude from fields jointly owned by France’s Total SA, Cnooc Ltd. of China and London-based Tullow Oil Plc.

AGRC started front-end engineering design last March that was expected to last for about 15 months, according to the budget document.

Credit: Bloomberg