KAMPALA, UGANDA: The prospects of Uganda starting oil production in 2025 may not be realised after the much-anticipated oil refinery project deal hit another dead end.
Government is scouting for a lead investor to finance the construction of the 60,000-barrel-per-day oil refinery planned to be built in Hoima district.
This follows the expiry of the key Project Framework Agreement (PFA) signed on April 10, 2018, with Albertine Graben Energy Consortium (AGEC), a special purpose vehicle of American and Italian firms.
The agreement expired on June 30th when AGEC remained behind schedule on key agreed obligations.
The initial expiry of the agreement was reportedly extended twice due to the Covid-19 pandemic in 2020 and 2021.
In a statement, the energy ministry says the government is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project.
Do you have a story or an opinion to share? Email us on: dailyexpressug@gmail.com Or follow the Daily Express on X Platform or WhatsApp for the latest updates.
