Uganda plans to develop a 60,000 barrels of oil a day (bopd) refinery in
Hoima in two phases of 30,000bopd each, with the first expected to
complete in 2020. PHOTO | FILE
By Halima Abdallah
In Summary
French oil giant Total has offered to take up a 10 per cent
stake in Uganda’s oil refinery project, subject to government approval.
The firm has written to President Yoweri Museveni seeking to
take up shareholding in the greenfield project estimated to cost $4
billion.
“Total has written to us indicating they want to take a stake in
the refinery,” said a senior official at the Ministry of Energy and
Mineral Resources.
On Thursday, the oil firm confirmed the development.
“Total understands the strategic importance and value of the
refinery project for the Republic of Uganda,” it said, adding that it
hopes “to assist with technical expertise if deemed necessary.”
Uganda's oil fields are jointly owned by Total, Britain's Tullow
and China's CNOOC. They each own a third of oil production licences
with an estimated output of 200,000 to 230,000 barrels of crude oil per
day.
The East African Community member states have been allocated a
combined 40 per cent stake in the refinery with 60 per cent reserved for
private investors.
So far only Tanzania and Kenya have taken up eight per cent and
2.5 per cent stake respectively while Rwanda, Burundi and South Sudan
are yet to commit to the investment.
According to Dozith Abeinomugisha of the Petroleum Directorate,
“a new process of searching for an investor has commenced. Several
companies (more than 20) have expressed interest to participate in the
refinery development. The government is sieving through these companies
to determine those that warrant further engagement and at that time
those will be made public.”
The refinery is expected to start operations in 2020. However
talks with bidders – a Russian consortium and later a South Korean firm –
have failed.
Uganda plans to develop a 60,000 barrels of oil a day (bopd)
refinery in Hoima in two phases of 30,000bopd each, with the first
expected to complete in 2020
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