)
)
Uganda’s National Oil Company Ltd (UNOC) announced another milestone in the development of the country's oil sector on Saturday.
An Implementation Agreement has been signed between the Ministry of Energy and Mineral Development (MEMD), UNOC, and their joint venture partner, Alpha MBM Investments, to commence the design, construction, and operation of the Uganda Refinery in Hoima.
The 60,000-barrel-per-day refinery is expected to be a big boost to the nation's energy infrastructure.
The construction of the refinery is set to take place over three years, with an emphasis on ensuring that Uganda meets its growing energy demands and adds value to its hydrocarbon resources.
)
)
)
This refinery is a key component of Uganda’s broader energy strategy, which focuses on self-reliance and sustainable growth in the oil and energy sectors. The refinery will also play a crucial role in enhancing the country’s long-term economic prospects.
Read: Fuel prices to stablise as Uganda’s first petroleum shipment docks at Mombasa
)
A Self-Funded Venture for Uganda’s Future
Last year, the government of Uganda committed to fully financing the $4 billion refinery through equity, marking a significant shift from traditional international project financing.
In a departure from past practices, the country will take a leading role in financing the project, with Alpha MBM Investments providing funding over the next three years.
This decision was announced in December 2024 by Ruth Nankabirwa Ssentamu, Uganda’s Minister of Energy and Mineral Development, who emphasised that Uganda’s drive for self-reliance is central to the refinery's development.
“Those who have money no longer want to finance oil projects. We have to do it ourselves,” Ssentamu stated
This refinery is poised to strengthen Uganda’s energy security and industrial capabilities, creating a more robust foundation for future development in the country’s energy sector.