A Consortium of private companies has signed a project framework agreement to set up a 60,000 barrels per day capacity refinery in Uganda’s Hoime District.
When executed, the project, which has an estimated value of around $3 billion will help develop Uganda’s oil industry infrastructure and provide livelihoods for the country’s people.
Following the favourable evaluation of its private sector-led offer by the Uganda Government, the Albertine Graben Refinery Consortium (AGRC), a group comprised of YAATRA Ventures, Baker Hughes General Electric (BHGE), LionWorks Group and Saipem, signed a project framework agreement confirming the plan this week.
YAATRA is an Africa-based infrastructure development and financing company which provides innovative infrastructure solutions on the continent. LionWorks is a private equity company focused exclusively on pan-African infrastructure opportunities.
Saipem is a global leader in engineering, procurement, construction and installation, as well as drilling, in the oil and gas market that will act as services provider to the project investors.
BHGE, the only global Fullstream Company, will provide a comprehensive portfolio of equipment, technical and financial services.
The refinery, to be located in Hoima district, will process crude oil from fields developed by companies that include Total, Tullow and China’s CNOOC and future upstream operators.
As part of the development, Uganda’s government has included a refined-product pipeline to Kampala for transporting finished products from the facility.
“The Ugandan Government’s commitment to fully realize its oil and gas sector and acceptance of the innovative solution provided by AGRC is driven by its strategic goals, leading to achieving middle income status,” Rajakumari Jandhyala, President and CEO of YAATRA Ventures said.
“We look forward to the execution phase and delivering a world class facility that represents a unique opportunity for investors. The Project will deliver a broad, significant economic development impact for Uganda and the East Africa region,” he added.
“The Government’s selection of our Consortium as preferred bidder is a testament to the collaborative efforts of these best-in-class enterprises leveraging each other’s strengths to produce a solutions-focused proposal. When executed, this will help develop the industry infrastructure and provide livelihood for the Ugandan people and, by extension, other East African countries” said Ado Oseragbaje, BHGE’s Vice President for Sub-Saharan Africa.
“This is a unique opportunity to work with Uganda on a transformational project that will provide jobs and skills to the country through improved access to substantially cleaner refined products for Uganda and the East Africa region,” commented Ronald Mincy, CEO and Managing Partner of LionWorks.