African Legal Support Facility in partnership with Uganda government to secures oil refinery deal
Published On 16 Apr, 2018



African Legal Support Facility (ALSF) in partnership with the Government of Uganda has finally signed an agreement with a consortium of American and Italian firms to finance and construct a US $4-billion refinery in the country’s Hoima district.

The signing ceremony for the agreement took place on April 10, 2018 in Entebbe, Uganda. The agreement would create critical terms and conditions for the oil refinery’s development and would also represent the major milestone in the commercialization of Uganda’s natural resource funding.

In June 2017, the Ugandan government had an emergency request which the ALSF responded to by providing capacity building and training support in the area of contract negotiation to the Uganda National Oil Company. The Facility would support the Ugandan government by creating an international legal firm that would provide advisory services for any of their ongoing negotiations.

The project will be a joint venture with the Ministry of Energy and Mineral Development and the Uganda National Oil Company (UNOC), a limited liability oil company owned by the Government of Uganda.

In August 2017, the Ugandan government elected to conduct negotiations with the Albertine Graben Refinery Consortium, which is composed of General Electric Oil and Gas, YAATRA Ventures LLC, Intracontinental Asset Holdings Ltd and Saipem SpA.

According to the president of Uganda, Yoweri Museveni  he said “This agreement is a key step towards the construction of the oil refinery in Hoima District, since it ensures development, design, financing, construction, operation and maintenance of the facility.”

The current reserves of crude oil in Uganda’s Albertine region are estimated to be approximately 6.5 billion barrels. The oil refinery is expected to have a 60,000 barrels-per-day processing capacity, and is expected to intensify production shortly after the facility’s inauguration. Ever since commercially viable hydrocarbon deposits were discovered in Uganda in 2006, the Government of Uganda has launched a development strategy which seeks to translate their presence into regional development and inclusive economic growth.

“Today’s signing ceremony, and this project in particular, are a ‘game changer’ for the country and for UNOC,The development of the refinery will trigger a number of other investments in the energy-based industries and thus contribute to economic development of Uganda and will contribute to the achievement of middle-income status,” explained Josephine Wapakabulo, Chief Executive Officer of the Uganda National Oil Company.

Wapakabulo provided her signature on behalf of the Ugandan government, while Rajakumari Jandhyala, CEO of Yaatra Ventures, signed on behalf of the Albertine Graben Consortium. The signing ceremony was also attended by Director and CEO of the ALSF, Stephen Karangizi.

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