(Reuters) – Uganda on Saturday signed an oil refinery agreement with UAE-based Alpha MBM Investments for a 60% stake in crude oil refinery in Kabaale, Hoima District, President Yoweri Museveni’s office said in a statement.
The country’s state-run Uganda National Oil Company will retain the remaining 40% stake in the 60,000-barrel-per-day refinery, according to the statement.
Besides the refinery deal, Uganda and UAE investors also signed five other agreements in various sectors.
Earlier this year, Uganda’s energy minister said the country was in negotiations to develop a planned $4 billion oil refinery with Alpha MBM Investments.
The UAE-based investment firm’s website says it is led by Sheikh Mohammed bin Maktoum, a member of Dubai’s royal family.
Discussions on key commercial terms between the Ugandan government and Alpha MBM Investments began on January 16 and had been expected to conclude within three months, according to the Minister of Energy and Mineral Development Ruth Nankabirwa.
The 60,000-barrel-per-day refinery is a cornerstone of Uganda’s emerging hydrocarbons industry, playing a vital role in the country’s energy strategy.
(Reporting by Elias Biryabarema; Writing by Chandni Shah in Bengaluru; Editing by Daniel Wallis)
