Uganda is set to land two mega-million dealings in the course of the New Year that will arguably transform its economy. A crude oil refinery worth $500 million and oil export pipeline worth in the region of $200 million are the proposed projects for the sub-Saharan country that has already set its equity in making the project a success.
It is informed that the projects will cost the government a mammoth amount to be in the area of close to $7.5 billion.
The East African country is still I the search for an architectural designer, and as well an investor to inject the funds to ease the burden, which will as well set-up the phased 60,000 barrels daily refinery in a sought to be public-private partnership.
In return the African country will retain a 40% stake in the refinery, which is worth a cut for the state.
Two parties seem to be interested in the project and are believed to be on board already. There ongoing talks between the Intra-continental Asset Holdings venture that includes Yaatra Ventures LLC and General Electric (GE) Africa from America and Saipem SpA from Italy, and the DongSong venture from Asian country and powerhouse, China. The negotiations are to find a potential investor.
The refinery is a delicate project and the suitable investor would be needed to fulfill the passion of the government.
For the pipeline, the National Pipeline Company (NPC) is in check of the modalities. The subsidiary of the Uganda National Oil Company (Unoc) has been mandated to oversee and handle the government’s commercial interests as far as the petroleum sector is concerned.
The Energy and Finance Ministries have inspected the project and given a green light for it. The two projects have been approved avidly and will set to commence their construction in the near future.
Total E&P, the French company is monitoring the 1,445km pipeline which will have the capacity to feed neighbouring countries with oil.
The final investment decision on the pipeline is expected in the first quarter of 2018, while the engineering, procurement and construction contract will most likely be awarded in late 2018 or early 2019.