President Yoweri Museveni last year launched spudding of oil wells at Kingfisher oil project operated by CNOOC in Kikuube District
The Government of Uganda has revealed that negotiations for the financing and construction of the country’s USD 4 billion (Shs15.26 trillion) domestic refinery began this month after Alpha MBM Investments from the United Arab Emirates was chosen by the as preferred bidder.
Ruth Nankabirwa, the Energy and Mineral Development Minister, told Journalists at Amber House on Tuesday that the Project Framework Agreement with the Albertine Graben Energy Consortium expired on 30th June 2023, and was not renewed.
The President of Uganda, directed a shift to a public sector-led the project.
“The Ministry of Energy and Mineral Development subsequently engaged stakeholders to develop a strategy for the refinery project. Expressions of Interest (EOIs) were received from several potential investors and evaluated. Following which, a Memorandum of Understanding (MoU) was signed on 22nd December 2023 between the Government of Uganda and Alpha MBM Investments LLC from the United Arab Emirates, outlining cooperation and negotiation terms for the Refinery Project,” said Nankabirwa.
She added: “Negotiations of the key commercial agreements between the Government and Alpha MBM Investments LLC commenced on 16th January 2024 and are expected to be concluded within three months.”
Alpha MBM Investments LLC The company is said to be an investment arm of a prominent member of the Royal family of the United Arab Emirates, Sheikh Mohammed bin Maktoum bin Juma Al Maktoum.Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum last year visited Uganda as part of the efforts to expand his business empire.
Uganda expects to have her first oil in 2025.
Minister Nankabirwa also announced infrastructure at the Kingfisher Development Area, one of the two major production areas already licensed, is well ahead of schedule having reached 21 per cent progress last month rather than the 17 per cent planned. The drilling of oil wells is also ongoing at the Tilenga oil project that will produce 190,000 barrels of oil per day during the
