Kenya has announced that it will invest US$74mn in Uganda’s proposed oil refinery project, situated in the Lake Albertine Rift Basin and expected to cost US$2.5bn
According to Daily Nation, Joseph Njoroge, Kenya’s energy principal secretary, said, “The Government of Uganda has invited both Kenya and Rwanda to buy small shares in the refinery. The offer is about three per cent.”
The refinery is not expected to start operations until 2017 and is estimated to produce an initial 30,000 barrels per day (bpd), the figure doubling to 60,000 bpd after a few years.
In January this year, the country had announced six companies as strategic investors in the refinery. These include China Petroleum Pipeline Bureau, Marubeni Corporation from Japan, Petrofac from the UK, Global Resources from Russia, SK Energy from South Korea and Vitol from the Netherlands.
The consortia will have a 60 per cent stake in the refinery and Uganda will carry the remaining 40 per cent stake.
Uganda has already struck a deal with three oil majors — Britain’s Tullow, Chinese National Oil Offshore Company (CNOOC) and France’s Total — for commercial production.
The East African country currently consumes 27,000 bpd. According to industry sources, this figure is expected to grow by seven percent this year.
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Uganda seeks investor for US$2.5 billion oil refinery project
