Uganda: Major Milestone in Plans for Crude Oil Refinery

By HSE East Africa | Tuesday Apr 10, 2018

Uganda’s president Yoweri Museveni will on Tuesday preside over the signing of the agreement that will pave way for the construction of the much-anticipated 60,000-barrel-a-day (bopd) refinery that will process crude oil from fields in the western part of the country.

The Project Framework Agreement to be signed between the Minister of Energy Irene Muloni and representatives of the Albertine Graben Refinery Consortium led by General Electric Co. will give the consortium exclusive rights to conduct a Front End Engineering Design (FEED) study, a Project Cost Estimates (PCE) study, and an Environmental and Social Impact Assessment (ESIA) study.

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Other members of the Albertine Graben Refinery Consortium include Yaatra Ventures LLC, Intracontinent Asset Holdings Ltd. and Italy’s Saipem SpA.

The $4 billion facility will be located on a 2,970 hectares land in Hoima district that will also host an international airport, petrochemical industries and energy-based industries among other supporting infrastructure. Starting in 2020, the facility will initially be able to process 30,000 barrels a day supplied by fields with 6.5 billion barrels of resources, developed by Total, London-based Tullow and China’s CNOOC Ltd.

While the government initially reserved 40 percent of the refinery for itself with an option to sell part of that holding to other countries in the region it is yet to disclose the share to be controlled by the consortium. Uganda will build a refined-product pipeline to Kampala and a crude-export pipeline through neighboring Tanzania.

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