A consortium led by Russia’s RT Global Resources has won the contract to build and operate Uganda’s US$2.5bn crude oil refinery
RT Global reportedly beat a group led by South Korea’s SK Engineering and Construction Company after both made final offers in January this year, Uganda’s Kampala-based Energy Ministry said.
The project could cost US$4bn, the ministry had said in November.
The government is expected to start negotiations in March with RT Global on a project that includes a 205 km oil-product pipeline. The winning bidder will hold a 60 per cent stake in the 60,000 bpd refinery, while Uganda has the option of selling part of its 40 per cent interest to the neighbouring states of Kenya, Tanzania, Rwanda and Burundi, according to Bloomberg.
“The objective of these negotiations is to conclude the project agreements to the satisfaction of government and the lead investor,” Fred Kaliisa-Kabagambe, the Energy Ministry’s permanent secretary, said in the statement.
A joint venture between the government and the RT Global-led group would organise project finance and engineering, the ministry said.
Other companies in the group include Telconet Capital Limited, VTB Capital, Tatneft JSC and GS Engineering & Construction Corporation, the government said.
Tullow Oil, China’s CNOOC and Total SA are jointly developing estimated 6.5bn barrels of resources near Uganda’s border with DR Congo. Output from the fields may start by 2018, according to the Ugandan government.
