Uganda is about to start refining crude oil after signing a final agreement with Alpha MBM Investments. President Museveni through a post on his official X page confirmed that the consortium led by Sheikh Mohammed Bin Maktoum, a member of the UAE royal family will construct a refinery at Kabaale, Hoima District.
More so, the president said the 60,000-barrel-per-day refinery will enhance the production of fuel in the country and also put an end to the exportation of raw materials. With the investment, Museveni narrated that Uganda will have the backing to export finished and redefined products.
Furthermore, he added that the fresh investment is an avenue for the country to add value to its resources. Similarly, the Minister of Energy and Mineral Development, Ms Ruth Nankabirwa also confirmed the new deal.
In a separate post on X, the minister discussed how the refinery is a significant step in the country’s history of oil and gas. However, the new deal is an important move that will add Uganda to the lineup of oil-producing countries despite the discovery of crude oil in the country in 2006.
Insight into the deal between Uganda and Alpha MBM Investments
Meanwhile, Uganda first reached an agreement with a US-based consortium, Albertine Graben Energy Consortium (AGEC) in 2018 to build and operate the proposed refinery. While agreeing on a $4 billion deal, the company suddenly pulled out of the deal leaving the project as a mere dream.
With the intervention of Alpha MBM Investments, the project is set to finally flag off. As revealed, the consortium will take control of 60% of the shares, leaving the Uganda National Oil Company to keep 40%.
As part of the agreement, the company will build a 21-kilometer multi-product pipeline from Kabaale to a distribution complex in Namwambula, Mpigi District of Uganda. Additionally, the firm will as well set up a refined storage terminal in Nawambula.
Likewise, Alpha MBM Investments in the deal promised to build a raw water pipeline from Lake Albert to the refinery at Kabaale.
