By Fred M. Mukwana
President Yoweri Museveni has given assurances that his government is fully committed to building an oil refinery in the country.
“The upstream is on course and the final investment decision. We are working to ensure that the oil industry starts production. Land cannot be a problem. The building of a refinery is a minimum. The target is to engage the oil companies for the pipeline,” he said.
Museveni made the assurance when he received and met a delegation of the Albertine Graben Refinery Consortium that was led by the Chief Executive Officer (CEO) of the consortium, Ms. Rajakumari Jandhyala, who called on him at State House, Entebbe.
He informed the delegation that the target is to use oil money for building capacity in the country.
The Albertine Graben Refinery Consortium CEO, Rajakumari Jandhyala, who briefed the President on the progress recorded in the oil project so far, said her delegation was keen to operationalize the oil industry in the country.
Energy and Minerals Minister, Eng. Irene Muloni, attended the meeting.
Uganda signed an agreement in April 2018 with a consortium, including a subsidiary of America’s General Electric, to build and operate an oil refinery in western Uganda that will cost $3 billion-$4 billion.
According to a statement, the project framework agreement that was signed will “ensure development, design, financing, construction, operation and maintenance” of the planned 60,000-barrel-a-day refinery.
Uganda discovered crude reserves estimated by government geologists at 6.5 billion barrels in the Albertine rift basin along its border with the Democratic Republic of Congo more than 10 years ago.
However, the start of production has been repeatedly delayed by disagreements with field operators UK’s Tullow Oil, China’s CNOOC and France’s Total over taxes and development strategy.
A lack of associated infrastructure such as a crude transportation pipeline and a refining facility have also hampered the start of production.
Uganda is aiming to both refine domestically and also export some of the crude via a pipeline through neighbouring Tanzania currently under development.
Uganda has said it is eyeing the start of commercial production in 2022-23.
According to the statement, members of the consortium are Albertine Graben Refinery Consortium (AGRC) include Nuovo Pignone International SRL, a General Electric subsidiary in Italy.
Others include YAATRA Africa and Lionworks Group Ltd both from Mauritius and Saipem Spa also from Italy.
