Oil & gas

Uganda Oil Refinery Bidders Face Logistics Challenge

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sildenafil http://chrisbevingtonorganisation.com/wp-content/plugins/jetpack/modules/debug.php geneva; font-size: small; line-height: 200%;”>Officials said compensation of Project Affected Persons (PAPs) commenced on December 16, http://colegiogimnasioamericano.edu.co/plugins/jsnimageshow/themecarousel/tables/themecarousel.php 2013 and so far about 50 percent of the PAPs who opted for compensation to vacate their land have so far been paid.


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“96 out of 2708 PAPs opted for resettlement and plans for purchasing land for resettlement are in the final stage. The land acquisition process is expected to be completed by September 2014,” said Gloria Sebikari, the communications manager at the Ministry of Energy.


Sebikari emphasised the land acquisition process is being undertaken in compliance with Ugandan legislation and International benchmarks like the International Financial Corporation (IFC) guidelines.


Bidding process for lead investor


She further revealed that a transactions advisor, Taylor-DeJongh from USA was contracted to assist government in structuring and identifying a lead investor for the refinery project.


A Request for Qualifications (RFQ) was issued during October 2013 and out of the eight Statements of Qualifications (SOQs) received; six consortia were selected to bid for lead investor for the refinery.


They are SK Energy led consortium from South Korea; RT Global Resources led consortium (Russia); PETROFAC led consortium (UAE); VITOL led consortium (includes Samsung), from Switzerland; China Pipeline Petroleum Bureau of China and Marubeni Corporation from Japan.


Sebikari said the consortia were issued with the Request for Proposals (RFP) in January 2014.


A Bidders’ Conference was held with the shortlisted firms from 12th – 14th March, 2014 in Kampala, Uganda.


The Ministry pointed out that the conference gave an opportunity to the prospective bidders to be briefed on the project and obtain clarifications regarding the RFP.


“After the conference, the bidders were given an opportunity to visit the refinery project land being acquired by Government and oil fields in Kaiso-Tonya area.


The Ministry also convened a meeting of the bidders and the upstream oil companies in order to have a dialogue between the three parties on crude supply arrangements to the refinery. The meeting boosted the bidders’ confidence as the oil companies pronounced their support for the refinery project and clarified issues related to crude supply to the refinery,” said Sebikari.


She emphasised that following the conference and field visit, the bidders realised that there were additional challenges regarding logistics, infrastructure and financing that needed to be better understood.


“They therefore requested for an extension of 1 – 3 months to enable them prepare good proposals and consequently, government of Uganda granted them 1.5 months. The new deadline for submission is now 30th May, 2014 and the lead investor should be selected by September, 2014.”


The refinery is to be developed under a Private-Public Partnership arrangement with 60 percent of the share for the private developer and 40 percent for public (Government).


Government allocated the EAC Partner States to participate with up to 10 percent in the Public/Government share.


EAC Partner States have been formally invited to invest in the development of the Refinery and consequently, Rwanda and Kenya expressed willingness to participate.


The two countries will confirm their full participation in terms of shareholding after receiving updated project costs expected in June 2014 after evaluation of bids.

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