Uganda has signed the Oil Refinery Implementation Agreement that will allow Uganda to add value to its oil products .
The agreement signed at State House Entebbe was witnessed by President Yoweri Museveni.
UAE-based Alpha MBM Investments will have a 60% stake in the oil refinery to be built in Kabaale, Hoima District. State-run Uganda National Oil Company (UNOC) will retain the remaining 40% stake in the 60,000-barrel-per-day refinery.
“The oil refinery is not just about fuel but also about Uganda producing and exporting refined products instead of importing them. We must stop exporting raw materials and instead add value to everything we produceI want to thank His Highness Sheikh Mohammed Bin Maktoum and our friends from the UAE for their commitment to investing in Uganda.. ,” President Museveni stated .
“Today’s agreement marks a significant milestone for Uganda and paves way for the design, construction and operation of the 60,000 barrels per day refinery to be undertaken in Kabaale, Hoima,” Ruth Nankabirwa, the Minister of Energy and mineral Development explained.
Construction is expected to take three years with UNOC and Alpha MBM Investments as the project partners. Alpha MBM Investments from UAE is led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai Royal Family.
“We are pleased to have a partner with financial strength, and a solid reputation. Work on the refinery will commence immediately,” Nankabirwa stated.
Also to be built is a 211 km long multi-products pipeline that will evacuate refined products from the refinery to a storage terminal at Namwabula, Mpigi District.
