Uganda is in discussions with an investment company led by a member of Dubai’s royal family, Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, for the development of a $4 billion refinery to process its crude oil, announced Energy Minister Ruth Nankabirwa on Tuesday.
After terminating negotiations in July last year with a U.S. consortium, Uganda seeks to solidify plans for the 60,000 barrel-per-day refinery, a crucial component for the growth of its emerging hydrocarbons industry.
“Expressions of interest were received from several potential investors, and following evaluation, a memorandum of understanding was signed on the 22nd of December 2023,” stated Minister Nankabirwa during a press conference.
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Negotiations between the Ugandan government and UAE-based Alpha MBM Investments, led by Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, commenced on January 16, with expectations to conclude within three months.
The east African country anticipates the commencement of commercial crude pumping in 2025 from fields in the Albertine rift basin near the border with the Democratic Republic of Congo. The fields are jointly operated by the Ugandan government, China’s CNOOC, and France’s TotalEnergies.
As the country forges ahead with this significant partnership, the collaboration with Alpha MBM Investments holds the promise of advancing the nation’s hydrocarbons sector and strengthening ties with the United Arab Emirates.
