Overview:
Energy Minister Ruth Nankabirwa told journalists in Kampala on Tuesday, 23 January 2024 that the government is currently in negotiations with Alpha MBM Investments over the modalities of the contract.
Uganda is holding talks with Alpha MBM Investments, a company from the United Arab Emirates, to construct its oil refinery.
Energy Minister Ruth Nankabirwa told journalists in Kampala on Tuesday, 23 January 2024 that the government is currently in negotiations with Alpha MBM Investments over the modalities of the contract.
She said negotiations of the key commercial agreements between the Government and Alpha MBM Investments LLC commenced on 16th January 2024 and are expected to be concluded within three months.
“Negotiation of the key commercial agreements between the Government and Alpha MBM Investments LLC commenced on 16th January 2024 and is currently underway,” she said.
The minister explained that the search for public sector ownership in the refinery started last year on the directive of President Museveni. This was after Government last year pulled plug on a partnership with a consortium that included a U.S. firm Baker Hughes over delays in raising the needed funding for the refinery project.
“The Ministry of Energy and Mineral Development engaged stakeholders to develop a strategy for the refinery project and received Expressions of Interest (EOIs) from potential investors, including Alpha MBM Investments LLC, Africa Economic Aid Limited, Bakertilly Middle East Limited, and St. Ignatius Energy,’’ Nankabirwa said.
“After thorough consultations and evaluations by the government, a Memorandum of Understanding (MoU) was signed on 22nd December 2023 between the Government of Uganda and Alpha MBM Investments LLC from the United Arab Emirates, outlining cooperation and negotiation terms for the Refinery Project,” she added.
The company is said to be an investment arm of a prominent member of the Royal family of the United Arab Emirates, Sheikh Mohammed bin Maktoum bin Juma Al Maktoum.Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum last year visited Uganda as part of the efforts to expand his business empire.
It is said that Expressions of Interest (EOIs) had been received from potential investors in the refinery projects which was estimated to cost about five billion dollars.
Some of those that had reportedly expressed interest in the project included Alpha MBM Investments LLC, Africa Economic Aid Limited, Bakertilly Middle East Limited, and St. Ignatius Energy.
Albertine Graben Energy Consortium (AGRC) had suggested raising some of the money to construct the refinery by listing it on the stock exchange. Nankabirwa said Alpha MBM Investments LLC has proved that it has money to move forward with the project that is behind schedule. Uganda expects commercial oil production before the end of 2025.
The 60,000 barrel-per-day refinery project is expected to end the region’s reliance on refined products imported expensively from overseas.