The much-delayed crude oil refinery in Uganda is back on track after eight international companies expressed interest in implementing the $4-billion project.
Four of the bidders have been shortlisted, and the Uganda government intends to select one of them before July, eight months after the Russian consortium that was initially awarded the contract to build the facility walked away in unclear circumstances,
Uganda Energy Ministry spokesperson Irene Muloni says the Uganda government is currently undertaking technical and financial evaluations of the bids submitted by the shortlisted companies.
Russia’s RT Global had won the tender to finance, build and operate the 60 000-bbl/d-capacity refinery, which was slated for completion in 2018. Completion has now been rescheduled to 2020.
Although Uganda entered into negotiations with SK Engineering & Construction-led consortium, of South Korea, which was named the alternate preferred bidder, after the Russian pull-out, the talks broke down, prompting the authorities to seek fresh bids.
“We hit a snag last year when we were about to sign with the Russians, who then pulled out. Now we have four consortia from which we will pick the winner to build the refinery,” she says.
Muloni declined to reveal the identities of the four shortlisted companies. However, the companies that have expressed interest in the project include China’s China Petroleum & Chemical Corporation (Sinopec) and Guangzhou Dongsong Energy Group; IESCO, of Turkey; Profundo, of Spain; SNC Lavalin, of Canada; Maire Tecnimot, of Italy; and Yatra Ventures, of the US.
The refinery, which will be located in Hoima district, in western Uganda, is a high priority project, owing to its importance in addressing the country’s energy needs and saving Uganda the $1-billion-odd it spends on petroleum product imports each year.
Uganda is determined to implement the refinery project to refine its huge crude oil deposits, estimated at 1.7-billion barrels and has partnered with Tanzania to build an export pipeline to the Port of Tanga.