Uganda selects South Korean Company for 60,000bpd refinery

0
1422

Uganda has invited a consortium led by South Korean SK Engineering & Construction Company to begin negotiation surrounding the construction of a proposed 60,000 barrels per day (bpd) refinery in Uganda.

A Russian consortium led by state-owned Rosnet was awarded the project in 2015. However, negotiation between the companies and government of Uganda broke down over some undisclosed conditions that Rosnet added to an agreed deal reached in May. The Korean consortium was also involved in the initial bidding won by Rosnet. The refinery is expected to refine portions of the crude that will be produced in Uganda for local and regional consumption.

Total, CNOOC and Tullow Oil are all exploring Lake Albert located in the Albertine basin. Discoveries by the three companies are estimated to be holding about 6.5 billion barrels of crude. The construction will also include a 205km product pipeline to transport refined product from the refinery to major depots in the country. The constructing company will own a controlling 60 percent stake in the refinery, while the remainder will be owned by the government of Uganda with an option to transfer some of its stake to neighbouring EAC countries to finance its capital contribution.

LEAVE A REPLY

Please enter your comment!
Please enter your name here