An implementation agreement (IA) for the Uganda Refinery has been signed, laying the foundation for the project which is crucial for the commercialisation of Uganda’s oil and gas resources.
President Yoweri Kaguta Museveni oversaw the signing of the IA between the Ministry of Energy and Mineral Development, Uganda National Oil Co. and the joint venture partner, Alpha MBM Investments at the State House, in Entebbe.
Alpha MBM Investments is a distinguished company from the United Arab Emirates (UAE) led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai Royal Family.
Today’s agreement marks a significant milestone for Uganda and paves way for the design, construction and operation of the 60 000 bpd refinery to be undertaken in Kabaale, Hoima. Construction is expected to span three years with UNOC and Alpha MBM Investments as the project partners.
“We are pleased to have a partner with financial strength, and a solid reputation. Work on the refinery will commence immediately,” said Hon Ruth Nankabirwa.
The refinery, which will be East Africa’s first major crude processing plant, aims to reduce Uganda’s dependency on imported petroleum products and is expected to meet the local (Ugandan) and regional demand of petroleum (fuel) products.
The commercialisation of Uganda’s oil and gas comprises the refinery and the East African Crude Oil Co. (EACOP). EACOP recently announced progress on the project’s financing.