Uganda is engaged in discussions with undisclosed partners hailing from Africa, the Middle East, and China, aiming to drive forward a projected 60,000 barrel-per-day oil refinery initiative. A senior government regulator’s official disclosed this development.
This effort persists despite the recent departure of the Albertine Graben Refinery Consortium (AGRC) from the $4 billion refinery venture in June 2023.
AGRC’s withdrawal resulted from challenges in securing the necessary funding within the stipulated timeframe for the final investment decision.
The AGRC consortium comprises key players, such as General Electric’s Oil and Gas division, YAATRA Ventures (US) from India, Intracontinent Asset Holdings, and Italy’s Saipem.
This resulted in the consortium losing its rights to develop the refinery, and the Ugandan Government has been forced to start over.
News agency quoted Ali Ssekatawa, Director of Legal and Corporate Affairs at the Uganda Petroleum Authority, as stating that the Uganda National Oil Company will persistently drive the advancement of the refinery project. Meanwhile, the government is actively seeking 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 Algeria’s 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, Ssekatawa emphasized that they have secured and prepared a substantial portion of land for the construction of the refinery and its associated pipelines.
The refinery’s designated site spans across 29 square kilometers within Kabaale Parish, located in Buseruka Sub-county, Hoima District.
