Uganda’s Oil Refinery To Take Shape This Year

Also known as the Albertine Graben Refinery Project, Uganda’s oil refinery will begin operations this year. If completed, the refinery will be one of the biggest oil and gas infrastructure projects to happen in Uganda and Africa.

This is major because it will have a maximum capacity of 60,000 barrels produced per day.

The US-based AGEC said it is willing to take on the USD 4.5 billion Final Investment Decision (FID) in the refinery. This gave a ray of hope that the project will finally commence after years of a standstill.

Apparently, an agreement was reached during a high-stake meeting last year in US. The meeting happened between Uganda’s strong man H.E Yoweri Museveni and the management of the consortium led by Mr. Rajakumari Jandhyala.

In early December, the president of Uganda released a statement to clarify that the East African Energy Security Transition investment Project would take the FID.

Uganda now has the challenge to convince other negotiators that the project will be safe. This is in relation to the endangerment of already fragile ecosystems.

It is highly likely that in 2023, gates will be opened to a number of negotiations to undertake the FID by the funders. However, this will all depend on whether a breakthrough is achieved.

In 2018, the Ministry of Energy and Mineral Development signed a Project Framework Agreement (PFA) with AGEC. This happened to enable the design, construction and financing of the oil refinery in Hoima and Kabale districts.

As Uganda seeks to have an operational 60,000 barrels per day. The country is said to have been too rigid and conservative in past negotiations. It is now unclear if it will soften its stance in the coming negotiations.

Check Also;

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• Museveni Appoints New Board Members Of National Oil Company

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