CNOOC re-affirms Interest in the oil refinery project in Uganda

Last Updated 13 years ago by Kenya Engineer

The China National Offshore Oil Corporation (CNOOC) desires to have a piece Uganda’s oil Refinery pie. The Company expressed interest in the refinery project after holding meetings with the company’s chairman Wang Yilin and the Prime Minister, Amama Mbabazi, in Beijing last week.

Mr. Yilin, whose subsidiary (CNOOC-Uganda Limited) is yet to receive a 25-year licence to embark on oil production conveyed the Company’s interest in investing in both the refinery complex and the oil pipeline.

This follows almost a fortnight after the three heads of states from Kenya, Rwanda and Uganda met in Entebbe and agreed to explore the possibility of EAC partner States of investing in the oil refinery to be constructed in Uganda.

The Ugandan Government has already agreed to construct a 30,000 barrels-per-day refinery complex in Kabale Sub County in Hoima District for the 3.5 billion barrels of oil discovered so far. According to the Government, the two projects may cost approximately $6 billion. However, this is set to advance to a 60,000 barrels per day capacity in 2018 and 120,000 barrels per day in 2022.

The Construction of the refinery is set to be complete by 2016 whereas production is also anticipated to begin the same year. In the meantime, Taylor Dejongh (TDJ) a US-based Company which won the bid last year to provide transaction guidance and recommendations on the refinery project is still in progress.

 TDJ amid other firms will commend appropriate ownership of the refinery, associated elements including; crude and product pipelines terminal. It is also to recommend a suitable investor in the Public-Private Ownership (PPO) contract.

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