State-owned Uganda National Oil Corporation (UNOC) has concluded a partnership agreement with private investment firm Alpha MBM Investments for the development of an oil refinery in Uganda. Initially signed in December 2023, the agreement conclusion paves the way for the construction of the $4 billion facility.
The companies will now proceed to sign the requisite commercial agreements, including the Host Government Agreement (HGA), Crude Suppliers Agreement (CSA) and Shareholders Agreement. While the HGA will outline key commitments and obligations of the state and its partners, the CSA will determine feedstock of 60,000 barrels per day for the facility. Thereafter, a final investment decision will be made, with the facility financed through a combination of debt (60%) and equity (40%).
âWe are pleased to have a partner with financial strength and a solid reputation. Work will commence immediately after negotiations to recover the lost time,â stated Ruth Nankabirwa, Minister of Energy and Mineral Development Uganda.
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