Uganda will have an oil refinery in two years’ time. The government of the East African country has closed a deal with a consortium of American and Italian firms to finance, construct and operate the $4 billion refinery.
The consortium of four firms was picked after a review of more than 40 companies that wanted to construct the refinery. The deal involves the development, design, financing, construction, operation and maintenance of the facility.
The East African Reports that the project is a joint venture with the Uganda Energy Ministry and the Uganda National Oil Company. The financing agreement for Uganda’s refinery was handled with the support of African Legal Support Facility (ALSF), a subsidiary of African Development Bank (AfDB).
Uganda’s hydrocarbon deposits were discovered in 2006. The reserves of crude oil in Uganda are estimated to be approximately 6.5 billion barrels. The oil refinery is expected to have a 60,000 barrels-per-day processing capacity and will start its operation in 2020.
Further reading on theeastafrican.co.ke