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Uganda oil refinery project bids to be held in Sept

16 August 2013, 18:30 Godfrey Olukya

Kampala - Arrangements for holding bids in the Uganda oil refinery construction project are being finalised so that the exercise can be carried  out next month, Uganda's ministry of energy and mineral development has said.

Uganda's president Yoweri Museveni has always insisted that Uganda will not export it's oil in crude form adding that a refinery must be constructed in the country. He reasons that by exporting crude oil, the country is denied other oil related opportunities like using oil by- products to make plastics and other products which would also create employment.

An American energy investment firm, Taylor Dejongh, has been contracted as the transaction adviser for the project, a statement released by the ministry has revealed.

''The firm is supporting the government in sourcing for the lead investor and financing for refinery, which will be developed on a public - private partnership basis,'' the statement said.

It added that a request for qualification will be issued in September for potential investors to formally express interest.

Existence of over three billion barrels of oil has been confirmed in the east African country where several oil companies including Tullow oil Uganda Limited, CNOOC from China and Total have been carrying out exploration.

Uganda plans to develop a refinery with an input capacity of 60,000 barrels per day in a modular manner, starting with a capacity of 30,000 barrels per day by 2018 which will be increased to 60,000 per day before 2020.

The refinery which is planned to be constructed near oil wells in western Uganda, about 360 Kilometers from the capital Kampala is expected to produce diesel, liquefied petroleum gas, petrol, kerosene, jet fuel and heavy fuel oil.

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