A UAE-backed company has won the contract to build Uganda’s first crude oil refinery.
The 60,000-barrel-per-day refinery will be built in Kabaale, Hoima District.
UAE-based Alpha MBM Investments owns a 60% stake in the refinery, while Uganda’s National Oil Company holds the remaining 40%.
Located in Kabaale, Hoima District, the refinery will process Uganda’s locally extracted crude oil, reducing reliance on imports and strengthening energy independence.
Uganda aims to leverage its oil reserves in the Albertine Graben region through this refinery, enhancing local energy production.
The project will stimulate industrialization, create jobs, and secure the country’s fuel supply, cutting down on fuel imports and boosting regional energy security.
President Yoweri Museveni’s office confirmed that UAE-based Alpha MBM Investments acquired a 60% share in the refinery, while Uganda’s state-run National Oil Company retained 40%.
By maximizing its oil reserves in the Albertine Graben, Uganda seeks to accelerate industrialization, generate employment, and improve regional energy security.
In January, Uganda selected Alpha MBM Investments to develop the $4 billion refinery, which will process the country’s crude oil.
This decision came after Uganda ended negotiations in July last year with a consortium, including a U.S. firm Baker Hughes, due to its failure to secure financing on time.
Uganda’s refinery project will expand local refining capacity, lower fuel imports, and drive economic growth.
Once completed, the facility will strengthen regional energy security and create new opportunities in the petroleum industry.
The refinery’s construction, led by Uganda National Oil Company (UNOC) and Alpha MBM Investments, will take three years.
Alpha MBM Investments, headed by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum of the Dubai Royal Family, will provide financial backing and expertise for the project.
“We are glad to have a financially strong and reputable partner. Construction will begin immediately,” said officials.
“This agreement marks a major milestone for Uganda, setting the stage for designing, building, and operating the 60,000-barrel-per-day refinery,” said Minister of Energy and Mineral Development Ruth Nankabirwa.
Uganda’s first crude oil refinery will increase Africa’s oil output by refining 60,000 barrels per day.
The facility will process crude from the Albertine Graben region, increasing domestic fuel production and reducing dependence on imported petroleum products.
As Africa’s energy demand rises, the refinery will improve regional supply, driving economic growth and industrial expansion.
The project positions Uganda as a key player in Africa’s refining sector, attracting foreign investment and bolstering energy security across the continent.
source:africa.businessinsider.com
