The Government has called on capable financial institutions and high-network individuals to finance Uganda’s $4b 0(about shillings 14.6 trillion) oil refinery. 

Uganda targets to begin producing oil and gas by mid 2025. Some of the oil will be exported through the East African Crude Oil Pipeline, while the rest is expected to be refined locally for home and regional consumption. 

Energy ministry spokesperson Solomon Muyita on Monday, July 3, 2023 said the Government is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project. 

The Government and the Albertine Graben Consortium have over the years made achievements in the development of the project in Hoima in Western Uganda. 

According to Muyita, the key achievements so far made in this project, include the Frontend Engineering Design, refinery configuration (Frontend Loading 2), the project environmental and social impact assessment study, logistics study, commercial and marketing study. 

The Uganda refinery project includes the development of a 60,000 barrels of oil per day (bpd) refinery located in Kabaale, Hoima district, a 211km multi-products pipeline from Kabaale to a distribution hub in Namwambula in Mpigi district, a refined product storage terminal in Namwabula and a raw water pipeline from the Lake Albert to the refinery in Kabaale. 

The refinery project will be a private sector-led project, with the Government’s share held by the Uganda National Oil Company (UNOC), through its subsidiary Uganda Refinery Holding Company. East African Community partner states Kenya and Rwanda and TotalEnergies Exploration and Production Uganda (TEPU) have expressed interest in holding shares. The project is expected to be funded through a debt-to-equity ratio of about 70:30. The lead investor will be responsible for raising the debt for the project.  

The Government entered into a Project Framework Agreement (PFA) with the Albertine Graben Refinery Consortium (AGRC) for the development of the greenfield refinery on April 10, 2018. In June 2022, AGRC rebranded to the Albertine Graben Energy Consortium (AGEC).   

The AGEC consortium includes YAATRA Africa, Saipem S.p.A, Baker Hughes. The PFA is between Government through the energy ministry and AGEC together with UNOC. The private developers have a 60% shareholding in the project.