Uganda expects FID on $4-B oil refinery in February 2027
A final investment decision (FID) for Uganda's planned crude oil refinery is expected next February, the sector regulator said of a step that could trigger long-delayed development of the $4 billion project.
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The East African country signed a memorandum of understanding (MoU) with UAE-based Alpha MBM Investments for development of the project in March last year.
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Similar initiatives with other investors from Russia and South Korea have failed in the past.
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The refinery FID is expected in February 2027 and basic engineering works have begun, the Petroleum Authority of Uganda (PAU) said on social media platform X on Wednesday.
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Alpha MBM Investments is slated to take a 60% stake in the facility, with the rest held by state-owned Uganda National Oil Company (UNOC).
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With planned capacity of 60,000 barrels of oil per day, the refinery is expected to be a cornerstone of Uganda's emerging hydrocarbons industry when it starts commercial oil production from fields in the west of the country.
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In a separate X post, PAU said that the East African Crude Oil Pipeline (EACOP), another project crucial to Uganda's hydrocarbons industry, was slightly behind schedule, citing disruptions caused by the conflict in the Middle East.
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