Uganda’s future 60,000-barrel-a-day oil refinery in Hoima district needs a final investment decision (FID) this year if it wants to be ready on time to process domestic oil from its western region.
The $4bn refinery is part of Uganda’s vision to develop its oil and gas sector, which also includes the EACOP pipeline to export oil to Tanzania. It will produce refined products such as petrol, diesel, kerosene, jet fuel and liquefied petroleum gas for the domestic and regional markets – making it the only operational refinery in East Africa.
The project has been delayed for years due to issues such as land acquisition, financing and contract negotiations. In January, Uganda announced it has opened talks with Alpha MBM Investments LLC, an investment firm based in the UAE, to develop the refinery. The discussions are set to conclude within three months, as disclosed by Energy Minister Ruth Nankabirwa in January.
With oil production slated to commence in 2025, Uganda is banking on the refinery to not only process a portion of its crude but also to stimulate job creation.