Building local capacity in the oil and gas sector

Uganda’s Oil Refinery Project Gains Momentum

Uganda has taken a significant step in its oil and gas sector with the signing of a historic agreement for the construction of a crude oil refinery in Hoima District. The agreement, signed in the presence of President Yoweri Kaguta Museveni, sets the framework for investment timelines and obligations between the Government of Uganda and Alpha MBM Investments LLC, a company owned by Sheikh Mohammed bin Maktoum bin Juma Al Maktoum of the Dubai Royal Family.

The refinery will have a capacity of 60,000 barrels per day and is expected to be completed within three years. The project also includes the construction of a 320-million-litre Kampala Storage Terminal in Mpigi District and a 212-kilometer finished product pipeline linking the refinery to the terminal. Additionally, the Mbegu water abstraction facility in Hoima District will be developed as part of the infrastructure.

Uganda National Oil Company (UNOC) and its subsidiary, the Uganda Refinery Holding Company, hold a 40% stake in the project, with Alpha MBM Investments owning 60%. The refinery is expected to transform Uganda’s energy sector by reducing reliance on imported petroleum products, creating thousands of jobs, and fostering industrial growth.

Energy Minister Ruth Nankabirwa emphasized the economic and social benefits of the refinery, stating that it will enhance local expertise, attract Ugandan businesses, and comply with international environmental and safety standards.