From the Field
Uganda enters into fresh refinery talks
KAMPALA, July 1, 2016 – Uganda has initiated talks with an SK Engineering & Construction-led consortium for the construction of a USD 2.5-billion refinery, the country’s Ministry of Energy and Mineral Development said in a statement released on Friday.
The ministry also said it had broken off talks with Russia’s Rostec Global Resources, saying the company had made additional demands. “Consequently [the] government was left with no choice but to halt negotiations and draw the bid bond. [The] government is now proceeding to invite the alternate bidder – SK Engineering & Construction – for negotiations,” the statement read. The negotiations, which kicked off in February, were halted in May.
Uganda hopes the have 60,000-bpd refinery ready by the start of oil production in the country, which is slated for 2019-2020. Oil was first discovered in 2006. Uganda recently gave the go-head for a USD 3.5-billion export pipeline that will see its resources transported to Tanzania for export.