A UAE-backed company has secured a major contract to build Uganda’s first crude oil refinery, a 60,000-barrel-per-day (BPD) facility, marking a significant milestone in the country’s energy sector.
- UAE-backed company secures contract to build Uganda’s first crude oil refinery
- The refinery is located in Kabaale, Hoima District, with a capacity of 60,000 barrels per day
- UAE-based Alpha MBM Investments holds a 60% stake in the refinery, while Uganda’s National Oil Company retains 40%
The refinery project, located in Kabaale, Hoima District, is expected to refine locally extracted crude oil, reducing Uganda’s reliance on imports and strengthening its energy independence.
The project is a key component of Uganda’s strategy to harness its oil reserves, particularly in the Albertine Graben region.
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The refinery is expected to drive industrialization, create jobs, and enhance the country’s fuel supply, reducing dependence on imports while boosting regional energy security.
According to a statement from President Yoweri Museveni’s office, UAE-based Alpha MBM Investments has acquired a 60% stake in the refinery, while Uganda’s state-run National Oil Company will retain the remaining 40%.
The project aligns with Uganda’s strategy to maximize its oil reserves in the Albertine Graben region, fostering industrialization, job creation, and regional energy security.
Uganda’s move to embrace self sufficiency
In January, Uganda selected UAE’s Alpha MBM Investments to help develop a $4 billion refinery to process some of its crude oil.
This follows Uganda’s decision in July last year to terminate negotiations with a consortium, including a unit of U.S. firm Baker Hughes, due to its failure to secure financing on time.
Uganda’s move to build its own refinery aims to enhance local refining capacity, reduce dependence on fuel imports, and support economic growth. .
Once completed, the refinery is expected to boost regional energy security and create new opportunities in the petroleum industry.
The refinery’s construction is expected to take three years, with the Uganda National Oil Company (UNOC) and Alpha MBM Investments as project partners.
Alpha MBM Investments, led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai Royal Family, brings significant financial strength and expertise to the project.
“We are pleased to have a partner with financial strength and a solid reputation. Work on the refinery will commence immediately.”
“Today’s agreement marks a significant milestone for Uganda and paves the way for the design, construction, and operation of the 60,000 barrels per day refinery,” said Minister of Energy and Mineral Development Ruth Nankabirwa.
Uganda’s first crude oil refinery is set to boost Africa’s overall oil output by processing 60,000 barrels per day.
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The facility will refine crude extracted from the Albertine Graben region, increasing the continent’s domestic fuel production and reducing dependence on imported petroleum products.
With growing energy demands across Africa, the refinery will enhance regional supply, supporting economic growth and industrialization.
It also positions Uganda as a key contributor to Africa’s refining capacity, attracting foreign investment and strengthening energy security within the region.
