Uganda to conclude on new oIL Refinery lead investor soon,New exploration licenses expected next month

By Nankwanga Eunice Kasirye

Government has received a number of new investment interests for the oil refinery construction with hope of conclusion by February 2017. According to the minister of Energy and Mineral Development Irene Muloni, the refinery hit a snag after the lead investor issued unfriendly conditions to the government of Uganda.

Through Public Private Partnership, government is seeking for a lead private investor with 60% stake in the refinery construction. Kenya is said to have agreed to invest 2.5% stake, Tanzania 8% while Total is settling in for a 10% stake.

The minister who was addressing the 2016 Uganda International Oil and Gas conference also revealed that new exploration Licenses for the 60% of the Albertine Graben 3000 square mile oil field will be issued before close of this year, applications and bids are currently under evaluation.

The Minister is optimistic that oil will be flowing by 2020 and with a plan for companies to add value through the refinery exports and other values the country will transform to middle income quicker than expected.

Nine Production licenses were issued to Tullow Uganda, Total and CNOOC this year with a target of 8billion Uganda million shillings inflow. Uganda discovered oil over a decade ago with 6.5 billion barrels of oil reserves and about 2billion barrels recoverable

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