A UAE-backed company has secured the contract to construct Uganda’s first crude oil refinery, a $4 billion project in Kabaale, Hoima District.
The facility will process 60,000 barrels of crude oil per day, enhancing Uganda’s energy independence and reducing reliance on fuel imports.
UAE-based Alpha MBM Investments holds a 60% stake in the refinery, while Uganda’s National Oil Company retains the remaining 40%.
The project aims to maximize Uganda’s oil reserves in the Albertine Graben region, supporting industrialization, job creation, and regional energy security.
President Yoweri Museveni’s office confirmed Alpha MBM’s selection after Uganda ended negotiations in July 2023 with a consortium, including Baker Hughes, due to financing delays.
Led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum of the Dubai Royal Family, Alpha MBM Investments will provide financial backing and expertise.
Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa, hailed the agreement as a major milestone that paves the way for the refinery’s development.
The refinery is expected to be completed within three years, significantly boosting Africa’s refining capacity, reducing Uganda’s dependence on imported petroleum products, and strengthening regional energy security.
