Business
Uganda to announce oil refinery investor in July
Publish Date: Mar 13, 2014
Uganda to announce oil refinery investor in July
Enery and Mineral Development Minister Irene Muloni
  • mail
  • img
newvision

Uganda will announce the lead investor and operator for its planned oil refinery in July and expects to conduct a licensing round for its vacant petroleum exploration acreage next year, a senior energy official told Reuters on Thursday.

The east African country first discovered crude deposits in the Albertine rift basin along its border with Democratic Republic of Congo in 2006 and reserves are estimated by the government at 3.5 billion barrels.

The government moved closer to getting the hydrocarbons industry off the ground last month when it signed a memorandum of understanding with three oil firms laying out a blueprint for the commercial development of its oil fields.

According to the deal, crude produced by the three firms - Britain's Tullow Oil, France's Total and China's CNOOC - will be shared between a thermal power generation plant, a planned refinery and an export pipeline.

Commercial oil production is expected to begin in 2016 at the earliest.

In December the energy ministry announced five consortia and one individual firm had been shortlisted to bid for the $2.5 billion refinery. The lead investor - which will also operate the plant - is expected to take up a 60 percent stake, with the remainder going to the Ugandan government.

The individual company shortlisted is Marubeni Corp, while the five consortia are respectively led by Petrofac, Global Resources, China Petroleum Pipeline Bureau, SK Energy and Vitol.

Robert Kasande, the energy ministry official overseeing the project, said the government had been holding pre-bidding talks with those shortlisted.

"They are expected to submit their final proposals in May, then evaluation will follow," Kasande said. "In July we will announce the winner," he added.

Uganda has scaled back its refining ambitions over the past two years. It now plans to start with a refinery with capacity of 30,000 barrels per day (bpd), gradually rising to 60,000 bpd. It had initially wanted a plant that could process 120,000 bpd but oil firms argued that would not be commercially viable.

About 60 percent of the Albertine graben, which measures about 23,000 square kilometres, remains unlicensed, according to the energy ministry's petroleum exploration and production department.

"We also hope next year we should be ready to license another batch of (exploration) blocks," said Kasande. Reuters

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
UAE Exchange customer wins Xpress Money ‘Win Big’ second weekly draw
Xpress Money recently announced the second weekly draw winner of its ongoing promotion – Win Big. Ms. Ann Minviluz Banquerigo, a customer of UAE Exchange, Lugogo Mall branch, won herself a prize money of UGX 250,000 by simply sending money using Xpress Money services....
Total CEO de Margerie killed in Moscow as jet hits snow plough
MOSCOW - The chief executive of French oil major Total, Christophe de Margerie, was killed when his private jet collided with a snow plough as it was taking off from Moscow's Vnukovo airport on Monday night....
Govt to identify key opportunities for growth
THE Government and World Bank are preparing a joint ‘Country Economic Memorandum’ report, which will identify key opportunities and challenges to accelerating socio-economic transformation...
Business guide in conflict resolution developed
A business guide for the business community to resolve conflicts without resorting to courts of law has been developed....
Mining to increase Agriculture production
Agriculture production in Uganda is set to increase with the establishment of mining and oil extraction industries despite concerns from the public that the discovery of oil in Uganda will affect the sector negatively....
Farmers to benefit from sh60b grant
UGANDAN farmers are set to benefit from a low-interest agricultural loan facilitated by a $24.7m (sh60b) grant from the International Fund for Agricultural Development...
Do Ugandan tycoons prepare their children to take over their business empires?
Yes
No
Can't Say
follow us
subscribe to our news letter