Name and Location
Uganda refinery project.
Client
Uganda Ministry of Energy and Mineral Development.
Project Description
The government of Uganda is interested in securing reliable supplies of petroleum products at least-cost to consumers.
Following the confirmation of commercial crude oil reserves in the country, government conducted a feasibility study for the development of an oil refinery in 2010/11. The study evaluated the development of an oil refinery, as opposed to a crude export pipeline to the Indian Ocean coast, among others.
As a result, the government of Uganda plans to develop a 60 000 bl/d refinery that will later be expanded to 120 000 bbl/d and then 180 000 bbl/d.
Value
The project is estimated at $2.5-billion.
Duration
Not stated.
Latest Developments
Uganda is seeking a lead investor for the construction of its $2.5-billion, 60 000 bl/d oil refinery and its associated infrastructure in Hoima, in western Uganda.
Uganda’s Petroleum Exploration and Production Department has issued a prequalification notice, calling on interested companies to bid for the financing and construction of the refinery.
The lead private investor will hold 60% of the project, with government owning the balance. According to Uganada Ministry of Energy and Mineral Development, the investor does not have to be a single entity and, therefore, consortiums can also be formed.
The project also includes the development of crude oil and product storage facilities at the refining site and the construction of a 205 km pipeline to transport the oil products from the refinery to the main market in Kampala.
Crude oil for the refinery will be procured from the oilfields under development by the Upstream Consortium, comprising China National Offshore Oil Corporation and Total and Tullow Oil. The refinery will produce diesel, petrol, kerosene, jet fuel, liquefied petroleum gas and heavy fuel oil.
It is estimated that the project construction will create between 4 000 and 6 000 temporary jobs, with the ongoing operations expected to create about 650 permanent jobs.
The closing date for the prequalification is November 8, with the process expected to be concluded by March or April next year.
Construction is expected to begin next year after a lead investor has been identified, with commercial production expected to start in 2017 or 2018.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Too early to state.
Contact Details for Project Information
Ministry of Energy and Mineral Development Petroleum Exploration and Production Department refinery development project manager, Robert Kasande, tel +256 414 320714, fax +256 414 320437 or email communications@petroleum.go.ug.