top of page
Moving People

News

Uganda walks away from US firm-led consortium after refinery contract expires

the east african




Uganda is seeking new investors for its $4.5 billion refinery after its Project Framework Agreement (PFA) with a consortium of American and Italian firms expired on June 30.


The Ministry of Energy said Monday that while the Albertine Graben Energy Consortium (AGEC) had made significant developments, it had failed to mobilise critical financing, for which Kampala is seeking new capital.


“There are, however, a number of outstanding aspects, including mobilisation of financing for the project and the Government of Uganda is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project,” the ministry said in a statement.


Energy Permanent Secretary Irene Batebe told The EastAfrican that the Yaatra Africa-led consortium still has a window to be a player in the refinery.


“Yes, but they can still participate in the new process,” she said, explaining that the government did not extend the PFA or sign an implementation project agreement with the consortium after its tenure expired without taking a Final Investment Decision (FID) on which it had been premised when it signed in 2018.


The refinery is to be financed through a debt-equity ratio of 70:30, with the task of raising much of the capital falling on the private developer.


In March this year, Uganda signed a wide-ranging memorandum of understanding with Algeria government-owned energy firm Sonatrach Petroleum Corporation, on midstream and downstream development of Uganda’s oil sector, which includes the refinery.


Sources indicated that the Ugandan government was growing jittery at the time over the lack of progress with the AGEC consortium, which includes American companies Yaatra Africa, Baker Hughes (part of General Electric) and Italian firm Saipem SPA, failing to move the project forward to FID and development.


The other option is to mobilise East African Community partner states – Kenya, Tanzania, Rwanda, Burundi, South Sudan and DR Congo – to commit to taking up equity, while capital investment from publicly owned agencies has also been mooted.


The Ministry of Energy says registered achievements with AGEC, include the completion of the Refinery Configuration or Front-End Loading 2 (FEL-2), the Front-End Engineering Design (FEED), which defines the technical design of the refinery, the project Environmental and Social Impact Assessment (ESIA) study, logistics study and commercial and marketing study.


The refinery shareholding structure was 60 percent owned by the private developer AGEC, while Uganda holds 40 percent, which is to be floated amongst its EAC partner states.


AGEC was contacted for comment but did not immediately respond to our inquiries by press time.


Uganda discovered commercially viable hydrocarbon deposits in 2006 in the Albertine region. The current reserves of the crude oil are estimated to be about 6.5 billion barrels.


The refinery is expected to process 60,000 barrels-per-day.

Commenti


construction-image1.jpg

Subscribe and keep up to date with all the latest news from Oakmark

Subtle Shapes Transparent
WEST AFRICA'S NO.1 ECONOMIC AGENTS

Oakmark Global Vision provides a bespoke business package to established corporate bodies, investors, and entrepreneurs who desire to enter the West & Pan African market. Find out more >

© 2025 Oakmark Global Vision Ltd - All Rights Reserved.

UK Company No. 07634879 / Nigeria Company No. RC 1288232

Regional Office

International Office

1 Kandi Close, Off Aminu Kano

Crescent, Wuse 2, Abuja F.C.T

Nigeria 

+234 -(0)- 929 207 02

+234 (0) 704 497 6500

info@oakmarkglobalvision.com

King Court, 17 School Road

Hall Green, Birmingham

United Kingdom  B28, 8JG

+44 (0) 121 244 1814

+44 (0) 746 625 2505

info@oakmarkglobalvision.com

 Oakmark Global Vision Limited

bottom of page