Business
Govt selects two final bidders for oil refinery
Publish Date: Jun 25, 2014
Govt selects two final bidders for oil refinery
Eng. Irene Muloni, the Minister of Energy and Mineral Development
  • mail
  • img
newvision

By John Odyek

Two consortia from Russia and South Korea have emerged as the final bidders of Uganda's $2.5 billion refinery after two others from China and Japan were knocked out of the bidding process, the Ministry of Energy said on Tuesday. 
 
The ministry said in statement that a consortium led by South Korea's SK Energy Co. and another led by Russia's RT-Global Resources had been selected to proceed to the final phase of the bidding process.
 
Uganda wants to add value to its crude output to maximise earnings from its hydrocarbon reserves in the Albertine Basin in Western Uganda. 
 
Government geologists estimate reserves at 3.5 billion barrels with 1.7 m barrels recoverable. 
 
The refinery is expected to be set up in Hoima district.
 
Early this month the two companies together with China's state-owned China Petroleum Pipeline Bureau (CPPB) and Japan's Marubeni Corporation were invited to submit bids from an initial shortlist of six firms.
 
Marubeni Corporation’s proposal was not evaluated because it lacked a bid bond while CPPB's proposal did not adequately satisfy all the requirements of tender, the statement said.
 
“Government will commence negotiations with the two preferred bidders. 
 
The two consortia will be expected to submit their respective best and final offers by the end of August 2014,” the statement said.
 
Officials have said a final winner, who is expected to take up a 60 percent stake in project as well as developing and operating it, will be announced by the end of the fourth quarter this year. 
 
The facility is planned to process 60,000 bpd and much of Uganda’s projected crude output is expected to be exported via a pipeline through Kenya, which has yet to be built. 
 
Oil production is expected to begin in 2017 with maximum output seen at 200,000 barrels. 
 

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
Economy to grow by 7% in five years
Uganda’s economy will grow by 7% a year in the three to five years’ time, up from a forecast 6% in 2014, helped by investment from oil explorers and by expansion in the services sector, the finance minister...
Change needed for economic independence — Kagina
Outgoing Uganda Revenue Authority (URA) boss Allen Kagina on Thursday called for a complete mind-set transformation among individuals and institutions in using the available resources for production rather than wasteful consumption....
EADB to fund more projects in Uganda
The East African Development Bank (EADB) has received credit worth $40m (about sh104b) from the African Development Bank (AfDB) to finance infrastructure, manufacturing, tourism, agriculture, transport, education and health projects...
Quacks in construction industry a big threat to Vision 2040
Players in the construction industry have asked the Government to regulate it, saying increasing numbers of quacks will affect efforts to attain the Uganda Vision 2040....
NSSF to save Uganda Clays from collapse
It is now or never for Uganda Clays Limited (UCL). The National Social Security Fund (NSSF) has announced that it will convert a sh16.7b loan to UCL into equity in a bid to secure the company’s future....
UAE Exchange Uganda celebrates, brand turns 34 globally
UAE Exchange Uganda joins its global family in celebrating the 34th anniversary of the brand coming into existence...
Should diplomatic passports issued to ex-govt workers be with drawn?
Yes
No
Can't Say
follow us
subscribe to our news letter