Uganda and a UAE Company are Negotiating a $4 Billion Oil Refinery

Uganda’s government is in talks with an investment company headed by a member of Dubai’s royal family to establish a $4bn (£3.1bn) oil refinery.

Uganda has selected Alpha MBM Investments LLC from a pool of five companies that submitted bids for the project, according to Energy and Mineral Development Minister Ruth Nankabirwa speaking on the BBC Newsday programme.

It is anticipated that an agreement will be reached between the two parties within a span of three months.

“We are optimistic that the necessary funds and technology will be readily available to support our efforts in refining crude oil and meeting environmental regulations,” stated Ms. Nankabirwa, expressing hope that minimal time will be spent on fundraising.

The minister informed Newsday that measures will be put in place to decrease the project’s emissions and mitigate its impact on the environment.

The government has announced that the refinery will assist Uganda in commercially processing its crude oil. This is seen as a significant step in the country’s efforts to attract investments worth $20bn in the sector.

The country anticipates commencing commercial crude oil production in 2025.

“Already, the investments that have been made thus far have made a significant contribution to the country’s economy – approximately $8.6bn – and we anticipate even greater returns during this period, ranging from $20bn to $25bn,” Ms Nankabirwa shared with Newsday.

Uganda is currently in the initial phases of a new oil project. This project involves the construction of a 1,443km pipeline that will be used to transport crude oil from Western Uganda to Tanzania’s Tanga port for export.

Tune in to BBC Newsday’s interview featuring Uganda’s Energy Minister Ruth Nankabirwa