Uganda Engages Prospective Partners for $4 Billion Oil Refinery

Uganda Holds Talks with Unnamed Partners from Africa, Middle East, and China for a $4 Billion Oil Refinery Project”

“Uganda is actively engaging in discussions with undisclosed partners from across Africa, the Middle East, and China to advance a proposed oil refinery initiative with a capacity of 60,000 barrels per day. A senior government official from a regulatory body revealed this progress.

This endeavor continues despite the recent exit of the Albertine Graben Refinery Consortium (AGRC) from the $4 billion refinery project in June 2023. AGRC’s departure stemmed from challenges in securing the necessary funding within the stipulated timeframe for the final investment decision.

The AGRC consortium comprised notable participants including General Electric’s Oil and Gas division, India’s YAATRA Ventures, Intracontinent Asset Holdings, and Italy’s Saipem.

As a result of the consortium’s withdrawal, the rights to develop the refinery were relinquished, compelling the Ugandan Government to initiate the process anew.

A news agency quoted Ali Ssekatawa, Director of Legal and Corporate Affairs at the Uganda Petroleum Authority, stating that the Uganda National Oil Company remains committed to driving the refinery project’s advancement. Simultaneously, the government is actively seeking a strategic partner for the project.

Ssekatawa indicated that forthcoming steps will be unveiled within the next three months.

He emphasized, “There is considerable interest and enthusiasm for advancing the refinery.”

Ssekatawa confirmed that discussions have taken place with Algeria’s state-owned company, Sonatrach. Additionally, talks have commenced with multiple interested entities from Africa, the Middle East, and China.

Ssekatawa elaborated, “The preferred approach is for the Uganda National Oil Company to collaborate with another national oil company to propel this project forward.”

It’s noteworthy that AGRC had already completed preliminary engineering and design work, along with environmental impact assessments for the proposed venture.

Furthermore, Ssekatawa highlighted that a substantial parcel of land has been secured and prepared for constructing the refinery and its associated pipelines.

The designated site for the refinery encompasses 29 square kilometers within Kabaale Parish, situated in Buseruka Sub-county within Hoima District.