Govt reopens opportunity to refinance Oil Refinery development project

By Jjunju Francis

04^th June 2023

The Ministry of Energy and Mineral development has opened an opportunity to any possible funder to undertake the development of Uganda’s Oil Refinery Project.

In a press statement just released by the Ministry’s spokesperson Solomon Muyita he revealed that Plans to construct a 4-billion-dollar crude oil refinery the biggest project in the East and Central Africa taken in the Project Framework Agreement between the government and an American-led Consortium has hit a snag.

The Project Framework Agreement officially ended on 30th June 2023 without the conclusion of other agreements Albertine Graben Energy Consortium (AGEC) to take the much-needed Final Investment Decision (FID).

Negotiations have been on since April 2018 when the Project Framework Agreement PFA was signed between the government and the Albertine Graben Refinery Consortium (AGRC). AGRC later rebranded as Albertine Graben Energy Consortium(AGEC)

According to the Project Framework Agreement (PFA), the Albertine Graben Refinery Consortium (AGRC) was to develop sixty-thousand (60,000) barrels of oil per day (bopd) greenfield Refinery in Hoima.

Muyita says although there is a standing challenges right now the country has had key achievements so far include the completion of the Refinery Configuration or Front-End Loading 2 (FEL-2), the Front-End Engineering Design (FEED), which defines the technical design of the Oil Refinery, the project Environmental and Social Impact Assessment (ESIA) study, logistics study and commercial and marketing study

There are, however, a number of outstanding aspects, including mobilisation of financing for the project and the Government of Uganda is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project.

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