Business
Govt selects two final bidders for oil refineryPublish Date: Jun 25, 2014
Govt selects two final bidders for oil refinery
  • mail
  • img
Eng. Irene Muloni, the Minister of Energy and Mineral Development
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
West Nile grid extension on schedule
THE West Nile power grid extension from Nyagak Hydro plant to the rest of the districts is moving steadily with over 46% of the work on the sh44 billion project...
Gov’t allocates sh10b for tarmacking roads
GOVERNMENT has earmarked sh10b for the tarmacking of roads intended to enhance commerce, reduce dust and facilitate mobility in 26 town councils...
Local govt asked to participate in alternative energy planning
Ministry of energy officials and experts from GIZ have urged local government leaders to participate in developing affordable and efficient sources of energy at district level to light up districts instead of the long waiting for the central government to do for them what they can do themselves....
Central Bank begins financial literacy campaign in schools
Bank of Uganda has started a campaign to boost people’s understanding of economic issues affecting them so that they can identify opportunities to exploit....
Shipping firm chief accountant charged in MTN $3.8m fraud
The chief finance officer of Three Ways Shipping Company has been charged with embezzling $3.8m (about sh10b), belonging to telecom company MTN....
Kabila fires CEO of state miner Gecamines for "gross negligence"
Democratic Republic of Congo's President Joseph Kabila has fired the chief executive of the country's state mining company Gecamines for "gross negligence", according to a presidential decree read out on the state television channel....
Should private schools and institutions be given tax exemption?
Yes
No
Can't Say
follow us
subscribe to our news letter