KAMPALA–Government has finally sealed an agreement with a consortium of investors including General Electric (GE) where the latter is to construct an oil refinery in the country.
This was confirmed at a meeting hosted by President Yoweri Museveni at State House, Entebbe on Monday.
The General Electric Oil and Gas in Sub-Sahara Africa delegates were led by the consortium’s Vice-President and Chief Executive Officer Ado Oseragbaje.
President Museveni told the meeting that Uganda is committed to the establishment of an oil refinery project that is cost effective, technologically sound and profitable to both government and capital market investors; leading to the creation of job for the people of Uganda.
Ado Oseragbaje, on his part, said the Consortium is committed to investing in Uganda. He noted that when the refinery project is completed, it will not only be an asset to Uganda but also to Africa in general.
The consortium comprises General Electric (GE), YAATRA Ventures LLC, Intra-Continent Asset Holdings Ltd (IA) and Saipem SpA.
Their major roles as partners involve Engineering, Procurement and Construction.
The completion of the agreement followed a partial deal reached in August between government and a consortium of investors, including General Electric to build and operate the country’s first oil refinery.
Government geologists estimate Uganda’s oil reserves at 6.5 billion barrels, of which between 1.4 and 1.7 billion barrels are considered recoverable.
The oil is due to start flowing in 2020 and the government is keen to build a refinery to process it and retain a larger share of profits.
Previously, Uganda suffered a huge setback last year when Russia’s RT Global Resources pulled out of talks to invest in Uganda’s refinery project then estimated at $2.5 billion.
Subsequent negotiations with a consortium led by South Korea’s SK Engineering also collapsed.