Uganda to start building oil refinery this year

Refinery Construction - Jaap Berk - Wikimedia CommonsLand acquisition for the refinery in Hoima is already ongoing. (Image source: Jaap Berk/Wikimedia Commons)Construction of an oil refinery in Uganda’s Hoima district is expected to start before December this year, the country’s Ministry of Energy and Mineral Development has said

“It is anticipated that construction will start in 2015 and first phase of the refinery will be ready around 2018,” said Catherine Bekunda, communications officer in the Ministry of Energy’s directorate of petroleum.

She added that a feasibility study has been finalised and land acquisition for the refinery is ongoing, and that construction will start after government’s negotiations with the appointed investor are complete and when land for the project is fully acquired.

The selection process for the lead investor is in the final stages, noted Bekunda. According to announcement in February this year, a consortium led by Russia’s RT Global Resources had been identified as the best bidder while a South Korean consortium led by SK Engineering & Construction ComPany had been named the alternate preferred bidder. The selected investor will have a 60 per cent stake in the refinery, with the remaining 40 per cent to be held by the Ugandan government.

The refinery will be developed in phases, with the initial phase producing 30,000 bpd before gradually increasing to 60,000 bpd. The cost of the project is expected to be around US$2.5bn.

Bekunda also said that the ministry expects about 700 oilwells to be drilled in the region between 2016 and 2024.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?