Uganda Shortlists 4 Investors for Oil Refinery

The ol refinery will be built in Western Uganda

At least 4 investors have been shortlisted for the development of the oil refinery in Uganda.

This came after negotiations with the selected Refinery Development Lead Investor, price RT Global Resources, a unit of Rostec State Corp. of Russia, collapsed in 2016.

The Minister of Energy and Mineral Development, Irene Muloni, said RT Global had set “new impossible conditions which were unfavorable to our government” hence the termination of the talks.

“Government started another process of identifying a lead investor and received interest from over forty companies,” said Muloni at a press conference in Kampala.

“Four companies have been shortlisted, and due diligence on these Companies was concluded,” she added without revealing details.

The Minister further said two companies have been “selected for negotiations of the Project Framework Agreement and Implementation Agreement in line with the Midstream Act 2013. The target is to complete the process this year 2017.”

The planned 60,000-barrel-a-day refinery will receive supplies from oil fields in the Albertine region.

Government expects to begin exploitation of the entire 6.5 billion barrels of crude resources by 2020.

Muloni said government will participate in the refinery project through the Uganda Refinery Holding Company (URHC), a subsidiary of the Uganda National Oil Company (UNOC).

It is through the URHC that the confirmed interests of the East African Partner States will be held.

The 13th Northern Corridor Integration Project (NCIP) Summit held last year in Kampala resolved to develop a crude oil export pipeline from Kabaale, in Hoima District to Tanga Port in Tanzania.

The 1,445km long, 24-inch diameter, heated pipeline is being developed to provide access for Uganda’s crude oil to the international market.

The Front-End Engineering Design (FEED) study for the development of the Hoima – Tanga East Africa Crude Oil Pipeline (EACOP) was launched in January 2017, with a target of FID in December 2017.


Muloni said the Hoima-Kampala refined petroleum products pipeline is being developed as an essential infrastructure for the refinery project with a planned storage terminal near Buloba, North West of Kampala to serve both as a Central Bulk Storage Facility and a Distribution Terminal.

She further revealed that the detailed routing of the corridor, together with the Environmental Baseline Survey studies were completed in September 2016.

The land acquisition process for the infrastructure corridor has commenced with development of a Resettlement Action Plan (RAP) study through a consultative process.

Appraising journalists on the progress in the energy sector, Muloni said the Master Plan and Engineering design for Uganda’s second international Airport to be located in Kabaale, Hoima were concluded.

“Government entered into a Memorandum of Understanding with M/S COLAS and SBI joint venture to evaluate the project. Discussions on financing the project are on-going,” she noted.


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