Ugandan Government Issues New Timelines for Oil Refinery Project
The Environment and Social Impact Assessment (ESIA) for Uganda’s proposed oil refinery has begun, after the government modified the project framework agreement to allow more time to complete the preparation works.
Government has granted the lead investor, the Albertine Graben Refinery Consortium – which comprises Saipem SPA, Nuovo Pignone International SRL, Yaatra Africa and Lionworks Group Limited – an additional 17 months to complete the ESIA studies and the Front-End Engineering Design of the project.
Following the completion of the preliminary studies and designs, the consortium is expected to sign a final investment decision for the 60,000 barrels per day refinery, which has an estimated worth of $3 to $4 billion, in 2022.
The Ugandan government, through the ministry of Finance, Planning and Economic Development, is considering options on how to fund its 40% stake in the refinery as volatile international oil prices are currently impacting capital markets. Government funding is estimated at $500 million and other options being considered include the tapping of funds from Export Credit Agencies and commercial banks.