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. The strategy is to develop the 60 000 bl/d refinery in a modular manner, starting with 20 000 bbl/d delivered within three years.

Value
The project is estimated at $2-billion.

Duration
Not stated.

Latest Developments
Uganda has contracted US firm Taylor-DeJongh to advise on the implementation of the refinery project.

DeJongh will be responsible for the selection of the lead investor for the refinery, the sourcing of finance and the formation of a refining company.

Government has also moved to secure its vast oil deposits from the control of foreign companies, after Parliament passed two of three controversial new laws, aimed at regulating the industry.

The two laws that have been passed are The Petroleum (Refining, Gas Processing and Conversion, Transportation and Storage) Bill 2012 and The Petroleum (Exploration, Production and Development) Bill 2012. Only the Public Finance Bill, 2012, which outlines procedures for petroleum revenue management, is yet to be passed.

Investors in the oil industry have criticised the laws on the basis that they will create new levels of bureaucracy and channels for corruption. Investors have also vigorously opposed plans by Uganda to construct a refinery.

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.