Refinery Consortium Given Tough Deliverable Targets

Minister of energy Irene Muloni exchanging paperwork with an investor Minister of energy Irene Muloni exchanging paperwork with an investor

Following the signing of a Project Framework Agreement (PFA) for the development of Greenfield refinery project in Hoima District between Ugandan government and Albertine Graben Refinery Consortium (AGRC) on Tuesday, the permanent secretary of Ministry of Energy and Mineral Development (MEMD) Robert Kasande revealed targets which the investors must deliver.

Among the four key deliverables the consortium must achieve during the term of the Agreement, Kasande said, will include establishing a long-term cooperation with the Government of Uganda; ensuring that the Refinery Project is commercially viable and profitable; raise the financing necessary to construct the Refinery Project; and deliver a cost effective, technologically proven and environmentally compliant Refinery Project that aids the Ugandan economy through the creation of jobs and the development of new skills.

Government of Uganda’s entry into the Project Framework Agreement with the Albert Graben Refinery Consortium for the purposes of developing, designing, financing, construction, operation and maintenance of the oil refinery in Hoima district will lead to the commencement of pre-Final Investment Decision (FID) activities such as Front-End Engineering and Design (FEED), Project Capital and Investment Costs Estimations (PCE), Environmental and Social Impact Assessments (ESIA), among others.

The Refinery will produce refined products (including petrol, liquefied petroleum gas, diesel, and kerosene) for supply in Uganda and other East African countries spurring economic growth and the development of new industries across the region.

The Refinery Project will be implemented by a special purpose vehicle (Refinery Company), which will be incorporated by Uganda Refinery Holding Company (a wholly owned subsidiary of UNOC) and AGRC.

The signing of this PFA is a land mark in the commercialization of the Country’s petroleum resources estimated at 6.5 billion barrels with about 1.4 – 1.7 billion barrels recoverable. The Government of Uganda is committed to continuing a sustainable and desirable development of an oil and gas industry for the benefit of Uganda and the region.

 

 

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