The Uganda Refinery Project includes: the storage terminal itself, for the refinery products located at Namwabula in Mpigi District. Alpha MBM Investments, an investment firm from the United Arab Emirates (UAE) is now the lead partner in the oil refinery project.
Will Uganda take a 40 percent stake in the oil refinery?
The government has been planning to take an equity stake of up to 40 percent in the refinery through the Uganda National Oil Company (UNOC) (with the possibility of it selling some of this stake to other governments from the East African Community).
What is Uganda’s first oil project?
French supermajor Total and Chinese state oil company CNOOC decided to go ahead with Uganda’s first oil project at the start of February 2022. As part of this, they are constructing the East Africa Crude Oil Pipeline (EACOP), which will have the capacity to export 216,000 barrels per day (bpd) of oil.
What impact could a refinery have on Uganda’s Development?
Various government policy documents and external studies have set out the impact that the refinery could have on Uganda’s development. Concerns about the security of Uganda’s fuel supply have been at the heart of the government’s long pursuit of a refinery, set out as early as 2008 in the National Oil and Gas Policy.
Who owns Uganda refinery company?
The Uganda Refinery Holding Company, a subsidiary of the UNOC will hold a participating interest of up to 40% in the Refinery Company on behalf of UNOC and Government of Uganda. The shareholders’ agreement lays out the financial obligations of each part such as cash calls, defaults, and stipulates the voting rights.
Should Uganda spend more money on a refinery?
It is also similar to the country’s annual road construction and maintenance budget and double the Ministry of Health’s budget in 2023-2024.64,65 Spending this amount of money on the refinery would therefore have severe opportunity costs. The refinery will generate considerable benefits for Ugandans.