Oil & gas

Gov’t Tables Plan For Mega Oil Refinery Project


viagra http://danielborda.net/wp-content/plugins/jetpack/modules/likes.php sans-serif; color: #333333;”>“We invited the bidders for this conference to share with them information on the developments in Uganda’s oil and gas sector, more about http://crossfitnaples.com/wp-content/plugins/jetpack/json-endpoints/class.wpcom-json-api-menus-v1-1-endpoint.php and more specifically to introduce the refinery project. We have discussed the proposed project structure, http://datedgear.com/wp-content/plugins/fusion-builder/shortcodes/fusion-section-separator.php base case configuration and addressable market for the refinery, the relevant Agreements, and the scoring criteria for both technical and financial proposals,” said Eng. Irene Muloni, Minister of Energy and Mineral Development (MEMD).

The Six firms/consortia that qualified for the second phase of the selection process were issued a Request for Proposal during January 2014. They are consortia led by China Petroleum Pipeline Bureau from China, Petrofac from UAE, RT–Global Resources from Russia, Vitol SA from Switzerland, SK Energy from S.Korea and Marubeni Corporation from Japan. The best evaluated bidder is expected to be announced in June 2014.

The Government is committed to keeping the bidding process transparent and therefore my Ministry thought it was prudent to meet all the bidders’ together in order to address any questions and allow for a healthy and transparent process” Eng. Muloni added.

The conference was held at Kampala Serena Hotel on 12th March 2014, the bidders will also visit the oil fields in the Albertine Graben and the area where the refinery is going to be developed at Kabaale Parish, Buseruka Sub County in Hoima District.

The bidders will also hold a meeting with China National Offshore Oil Corporation (CNOOC), TOTAL and TULLOW the companies licensed to undertake petroleum exploration, development and production of the oil and gas resources in the country.

The conference was supported by the Transaction Advisor of the project Taylor DeJough, Government’s advisory team.

Following the conference, the bidders are required to present their detailed proposals for Uganda’s Refinery Project to Government by 16th April 2014.

These proposals will include a project implementation plan that highlights a plan for management of logistics associated with the project given its remote location, project risks and mitigations, together with Security, Safety, Health and Environmental (SSHE) strategy and principles.

The project implementation plan must, among other things, also include a local content strategy that illustrates how the bidders intend to maximize use of Ugandan employees and resources.

“The proposals will include a detailed technical concept highlighting the refinery design the bidders intend to implement, taking into consideration the petroleum products market and fuel specifications in Uganda and the East African region. The shortlisted bidders will, in addition, submit a financial plan highlighting how they intend to raise funds for the project. They are also expected to document their plan for crude oil procurement together with their plans for sale, and marketing of refined products”, Mr. Robert Kasande, the Refinery Project Manager in MEMD added.

Uganda’s refinery project is to be developed under a public private partnership (PPP) arrangement with the Government holding 40% equity.

“We are in the process of acquiring the 29 Square kilometres of land through implementation of a Resettlement Action Plan (RAP) and a number of people have so far been compensated. The RAP takes into consideration the existing laws and international best practices”, Kasande said.

About the Bidders

1.China Petroleum Pipeline Bureau (CPPB) led consortium

CPPB was established in 1973, as pipeline engineering company under the China National Petroleum Corporation (CNPC).

CPPB has a complete pipeline construction industry chain with core technologies from pipeline research, survey, consultation, engineering,

procurement, Construction, commissioning, operation as well as maintenance.

The company has executed major projects in India, Chad, Kenya, Thailand, Mozambique and China, among others.

The Company’s net worth was about USD 2.1 Bn in 2013. The other companies with refining expertise in the consortium include:

• Wuhan Petrochemical Engineering Design Company Limited

• China Petroleum Jilin Chemical Engineering and Construction Company Limited, and

• Shandong Dongming Petrochemical Group Company Limited

2. Marubeni Corporation

Marubeni Corporation has invested in power projects, refineries, petrochemical plants, upstream asset and gas infrastructure, logistics, and construction.

The company has invested in key infrastructure projects and collaborated with major international oil developers, independent oil developers, and resource development companies in many countries, including the United States, the UK, India, Qatar, Russia, and Kazakhstan to conduct exploration, development, and the production of oil, gas and uranium. The Company’s net worth stands at $12.6bn as of March 2013.

3. Petrofac led Consortium

PETROFAC is a Tier 1 international company that has a track record of success in delivering multibillion projects in oil and gas.

PETROFAC operates in the UK, Middle East, North Africa, West Africa, Central America and Asia.

PETROFAC was listed on the UK stock market in 2005 and has a net worth of $1.55bn in 2013. Members of the Petrofac led consortium include;

• Haldor Topsoes, a Danish catalysis company that specialises in the design of process plants based on catalytic processes.

• Glencore Xstrata Plc, a global diversified natural resource companies and is one of the biggest companies within the FTSE 100 Index

• Springwood Capital LLP, an investment advisory firm that specialises in emerging African markets to offer the best opportunities for growth.

4. RT – Global Resources led consortium

RT Global resources, a subsidiary of Rostec which is one of Russia’s national oil companies, is a state international (export) investment development company that finances large infrastructure projects.

The corporation’s net worth stood at 11.6 Bn USD during 2013.

Total investments of the RT Global resources in infrastructure projects in various sectors in the last 10 years exceeds $15bn.

One of the members in the consortium commenced the construction of a 140,000 bbl/day refinery project in Russia in 2005, among other key projects.

Other members of the Consortium include;

• VTB Capital Plc which is Russia’s national leader in global investment banking that offers a full range of investment banking products and services.

• JSC Tatneft an oil and gas company with experience in exploration and production, refining and marketing and petrochemicals, among others.

5. SK Energy led consortium

SK Energy is a South Korean company engaged in oil refinery operation and marketing, exploration and production (E&P), petrochemicals, lubricants and coal business and trading.

SK Energy owns the Ulsan refinery in S.Korea which is one of the largest refineries in the world at 1.12 million barrels per day. The company’s net worth was $7.8bn as of 2013.

The other member of the consortium is SK Engineering and Construction.

6. Vitol SA led consortium

VITOL S.A is part of the Vitol Group of Companies, one of the world’s largest independent energy trading companies. VITOL deals in refining, storage, transportation and trading of oil and gas.

VITOL has a total of 1,025 employees globally in its different businesses. VITOL has been involved in the refining business since its establishment in 1966.

VITOL currently owns and operates around 150,000 bbl/day of refining assets. VITOL’s net worth was $2.2bn during 2013.

The other member of the consortium is Samsung C & T from South Korea which is engaged in business ventures in energy, natural resources and industrial materials and has participated in projects in the areas of refining, infrastructure projects, and petrochemicals, among others and is currently involved in the development of a 60,000 bbl/day refinery in Gabon, West Africa.

Samsung has vast experience and has participated in refinery projects in Taiwan, Korea, UAE, Singapore, Qatar and USA, among others. The company had a net worth of about $10.9bn during 2013.


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