KAMPALA, UGANDA — The Uganda National Oil Company (UNOC) is poised to sign Front-End Engineering Design (FEED) contracts for a $4 billion oil refinery in Hoima District, according to a report by the Daily Monitor.
The planned facility will process 60,000 barrels of crude oil per day and is expected to be built over three years. Technical studies are slated to begin before the end of 2025, followed by early works such as the construction of an access road and perimeter fencing.
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UNOC is currently conducting an Environmental and Social Impact Assessment for the project and is preparing to establish a dedicated project company, Kabaale Refinery Company Limited. In this joint venture, UNOC will hold a 40% stake, with private partners holding the remaining 60%. Alpha MBM Investments of the United Arab Emirates has been selected as the strategic investor.
“We expect the company to be fully incorporated and operational within the week,” said Felix Okot, UNOC’s head of refinery development, as quoted by the Daily Monitor.
The refinery is a key part of Uganda’s strategy to enhance its energy security. The country currently imports about 90% of its refined fuel, a cost of approximately $2.02 billion in 2023. Domestic production from the new refinery is intended to reduce imports, support industrial growth, and establish Uganda as a regional refining hub.
In other developments related to the oil sector, a 211-kilometer products pipeline is planned to connect the refinery to a storage terminal in Mpigi District. Negotiations for crude oil supply are underway with CNOOC Uganda Limited and TotalEnergies EP Uganda.
Additionally, Alex Nyombi, director for development and production at the Petroleum Authority of Uganda, stated that construction at the Kingfisher Development Area’s Central Processing Facility is nearing completion. Kabalega International Airport, which will serve as a logistics hub for the refinery, is 96% complete, according to Amos Muriisa, a public relations officer for SBC Uganda Limited.
The Uganda National Oil Company (UNOC) is a limited liability company wholly owned by the government of Uganda. It was established under the Petroleum (Exploration, Development, and Production) Act of 2013. The company’s mandate is to handle the commercial aspects of the country’s oil and gas sector.
