Uganda’s government has selected two of the four international bidders to build and construct the country’s first oil refinery and related infrastructure in the Lake Albert region of Buseruka Subcounty, Hoima District, Uganda.
According to the Ministry of Energy, SK Group from South Korea and Global Resources from Russia have progressed onto the next stage of the tender process, following the elimination of their two biggest competitors China Pipeline Petroleum Bureau, from China and Marubeni Corporation from Japan.
The proposed 60,000 bpd oil refinery will be developed in two 30,000-b/d phases that will include on-site crude oil and product storage as well as a 205-km product pipeline to a distribution terminal near Kampala
The oil production within the country is expected to begin in 2017.The majority of it is planned to be exported via a pipeline through Kenya, which has not been built yet.
According to the Energy and Mineral Development Ministry, the oil refinery will be designed to process Uganda’s waxy crude oil from the Albertine basin to deliver petroleum product markets in Uganda, Congo, South Sudan, Rwanda, Burundi, Kenya, and Tanzania.
Uganda’s government along with its adviser TaylorDeJongh will now begin contract negotiations with the best and final offers expected by the end of 2014.
Photo Source: Red Pepper
