LogIn LogOut

Uganda, Saipem Take Next Steps for Refinery

March 12, 2019

© tum2282 / Adobe Stock
© tum2282 / Adobe Stock

Uganda approved Italian oil services firm Saipem's plan for early engineering work on what is due to become a 60,000 barrel per day refinery in the East African country, a nascent oil producer, Saipem said on Tuesday.

In April last year, Uganda signed a deal with a consortium, including a subsidiary of General Electric, to build and operate a 60,000 barrel per day refinery that will cost $3 billion-$4 billion and is due to come online by 2023.

The other members in the consortium, which expects to give the final go-ahead for investment in the project by the end of 2020, are YAATRA Africa and LionWorks Group.

"(Ugandan Energy) Minister (Irene) Muloni approved the proposal for a technical solution developed by Saipem" for early-phase engineering and procurement for the refinery project, the company said.

France's Total, Britain's Tullow and China's CNOOC are developing Uganda's onshore oil.

Uganda's President Yoweri Museveni has said he wants his country to process some of the crude the country expects to start producing by 2022 to help create jobs and wring more benefits from the sector by using the refinery to develop associated petrochemical industries.

The refinery could put Uganda on a different path from many other African crude producers whose lack of refining capacity means they have to export the resource in raw form and buy back costly fuel, draining their foreign exchange earnings and sapping local economies.

(Reporting By Shadia Nasralla; editing by Emelia Sithole-Matarise)

Categories: Contracts Africa


Current News

Keppel Offshore & Marine Wins $74,7M FPSO Conversion Work

Keppel Offshore & Marine Wins $74,7M FPSO Conversion Work

China: INE, PetroChina to Deliver Marine Fuel Overseas

China: INE, PetroChina to Deliver Marine Fuel Overseas

Tokyo Gas Joins Chiba Offshore Wind Partnership

Tokyo Gas Joins Chiba Offshore Wind Partnership

PetroVietnam Says Annual Output Unaffected by COVID-19

PetroVietnam Says Annual Output Unaffected by COVID-19

Moray East Offshore Wind Farm Jacket Transport Completed

Moray East Offshore Wind Farm Jacket Transport Completed

Interview: Kongsberg's Geir Oscar Løseth Discusses the Hybrid OSV

Interview: Kongsberg's Geir Oscar Løseth Discusses the Hybrid OSV

Oil Rises on Vaccine Hope, Weak Dollar

Oil Rises on Vaccine Hope, Weak Dollar

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com