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The refinery will have a capacity of 60000bopd. (Image source: Adobe Stock)

In a major step to commercialise Uganda's oil and gas resources, the Ministry of Energy and Mineral Development, Uganda National Oil Company and the joint venture partner, Alpha MBM Investments have signed an implementation agreement (IA) to kickstart the Uganda Refinery project 

This will include the designing, construction and operation of the 60,000 bopd-capacity refinery to be undertaken in Kabaale, Hoima. Construction is expected to span three years with UNOC and United Arab Emirates-based Alpha MBM as the project partners.

Overseen by the President of Uganda, Yoweri Kaguta Museveni, the signing was executed at the State House, in Entebbe.

"We are pleased to have a partner with financial strength, and a solid reputation. Work on the refinery will commence immediately," said Ruth Nankabirwa, the Minister of Energy and Mineral Development.

The refinery, which will be East Africa’s first major crude processing plant aims to reduce Uganda’s dependency on imported petroleum products and is expected to meet the local (Ugandan) and regional demand of petroleum (fuel) products.

Besides the refinery, the East African Crude Oil Company (EACOP) is also part of Uganda’s oil and gas commercialisation plan, which recently confirmed progress on project financing.