The Ugandan government is currently in talks with an investment company led by Sheikh Mohammed bin Maktoum bin Juma Al Maktoum for the establishment of a planned $4 billion refinery to process its crude oil, as announced by Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa.
Last year, Uganda terminated negotiations with a consortium, including a unit of US firm Baker Hughes, over financing delays. Now, the focus is on Alpha MBM Investments, based in the United Arab Emirates, as the potential partner for the crucial $4 billion refinery project. Sheikh Mohammed bin Maktoum bin Juma Al Maktoum leads Alpha MBM Investments, according to the company’s website.
The refinery, designed with a capacity of 60,000 barrels per day, holds paramount importance for Uganda’s burgeoning hydrocarbons industry. Minister Nankabirwa stated that negotiations on key commercial details between the Ugandan government and Alpha MBM Investments commenced on January 16 and are expected to conclude within the next three months.
Uganda plans to begin commercial crude oil production in 2025 from fields in the Albertine rift basin, near the Democratic Republic of the Congo border. These fields are a joint venture between the Ugandan government (via the Uganda National Oil Company), China’s CNOOC, and France’s TotalEnergies.
President Yoweri Museveni’s administration is actively seeking to process some of the country’s crude oil domestically, with the goal of creating jobs and leveraging technology transfer.
Minister Nankabirwa disclosed that Uganda granted CNOOC a license on Tuesday to produce liquefied petroleum gas (LPG) at a plant to be built in the Kingfisher development area and operated by CNOOC. The Kingfisher and Tilenga fields are Uganda’s two major commercial oil development areas, with the latter operated by TotalEnergies. Although specific annual production figures have not been disclosed, Uganda’s gas reserves are estimated to be 500 billion cubic feet.
