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Uganda, UAE Firm Sign Refinery Implementation Agreement
Entebbe, Uganda | THE INDEPENDENT & AGENCIES | Uganda has signed a deal that paves the way for the implementation of its first crude oil refinery project.
UAE-based Alpha MBM Investments will have a 60% stake in the oil refinery to be built in Kabaale, Hoima District. State-run Uganda National Oil Company (UNOC) will retain the remaining 40% stake in the 60,000-barrel-per-day refinery.
“Today’s agreement marks a significant milestone for Uganda and paves way for the design, construction and operation of the 60,000 barrels per day refinery to be undertaken in Kabaale, Hoima,” said Minister Ruth Nankabirwa.
Construction is expected to span three years with UNOC and Alpha MBM Investments as the project partners. Alpha MBM Investments from UAE is led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai Royal Family.
“We are pleased to have a partner with financial strength, and a solid reputation. Work on the refinery will commence immediately,” Nankabirwa stated.
Also to be built is a 211 km long multi-products pipeline that will evacuate refined products from the refinery to a storage terminal at Namwabula, Mpigi District.
The agreement signing that took place at State House, Entebbe in the presence of President Yoweri Museveni.
The commercialization of Uganda’s oil and gas comprises the refinery and the East African Crude Oil Company (EACOP) which last week announced a major breakthrough in securing of financing.
UNOC is a limited liability company wholly owned by the Government of Uganda and mandated to handle the State’s commercial interests in the petroleum sub-sector and to ensure that the resource is exploited in a sustainable manner.
The refinery will be East Africa’s first major crude processing plant following the closure of the Kenya and Tanzania plants in 2013 and 2000 respectively.
The development works expected to commence this year, will see Uganda earn at least US$4b (about sh15.2trillion) in investment, on top of the ongoing oil related works.
“I want to thank His Highness Sheikh Mohammed Bin Maktoum and our friends from the UAE for their commitment to investing in Uganda,” said President Museveni after the signing.
“Today, I witnessed the signing of a historic oil refinery implementation agreement. The oil refinery is not just about fuel but also about Uganda producing and exporting refined products instead of importing them. We must stop exporting raw materials and instead add value to everything we produce,” Museveni said.
One of the biggest winners if we do have a refinery, will be @UG_Airlines. Cheap/affordable/unlimited supply of Jet-A1 will see them turn a profit and reduce ticket prices making them competitive. Their freight charges, too, will make exporters think of them as a worthy… https://t.co/YFZ7OjzisD
— DBwambale (@TheMutaD) March 30, 2025
In 2019, the final refinery configuration study was completed and approved by the government. The study was to determine the final refinery as a Residue Fluid Catalytic Cracker (RFCC) type of refinery.
In 2021, the Front-End Engineering Design (FEED) for the refinery was concluded and later approved by Cabinet.
The FEED was also approved by the Petroleum Authority of Uganda (PAU), the sector regulator.
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