Geza Ulole
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MARKET NEWS
APRIL 10, 2018 / 4:58 PM / 3 DAYS AGO
UPDATE 1-Uganda signs agreement with investors to build oil refinery
Reuters Staff
3 MIN READ
(Adds details, quotes)
By Elias Biryabarema
KAMPALA, April 10 (Reuters) - Uganda signed an agreement on Tuesday with a consortium, including a subsidiary of America’s General Electric, to build and operate an oil refinery in western Uganda that will cost $3 billion-$4 billion, the president’s office said.
According to a statement, the project framework agreement that was signed will “ensure development, design, financing, construction, operation and maintenance” of the planned 60,000-barrel-a-day refinery.
Uganda discovered crude reserves estimated by government geologists at 6.5 billion barrels in the Albertine rift basin along its border with the Democratic Republic of Congo more than 10 years ago.
But the start of production has been repeatedly delayed by disagreements with field operators UK’s Tullow Oil, China’s CNOOC and France’s Total over taxes and development strategy.
A lack of associated infrastructure such as a crude transportation pipeline and a refining facility have also hampered the start of production.
The east African country is aiming to both refine domestically and also export some of the crude via a pipeline through neighbouring Tanzania currently under development.
UPDATE 1-Uganda signs agreement with investors to build oil refinery
APRIL 10, 2018 / 4:58 PM / 3 DAYS AGO
UPDATE 1-Uganda signs agreement with investors to build oil refinery
Reuters Staff
3 MIN READ
(Adds details, quotes)
By Elias Biryabarema
KAMPALA, April 10 (Reuters) - Uganda signed an agreement on Tuesday with a consortium, including a subsidiary of America’s General Electric, to build and operate an oil refinery in western Uganda that will cost $3 billion-$4 billion, the president’s office said.
According to a statement, the project framework agreement that was signed will “ensure development, design, financing, construction, operation and maintenance” of the planned 60,000-barrel-a-day refinery.
Uganda discovered crude reserves estimated by government geologists at 6.5 billion barrels in the Albertine rift basin along its border with the Democratic Republic of Congo more than 10 years ago.
But the start of production has been repeatedly delayed by disagreements with field operators UK’s Tullow Oil, China’s CNOOC and France’s Total over taxes and development strategy.
A lack of associated infrastructure such as a crude transportation pipeline and a refining facility have also hampered the start of production.
The east African country is aiming to both refine domestically and also export some of the crude via a pipeline through neighbouring Tanzania currently under development.
UPDATE 1-Uganda signs agreement with investors to build oil refinery
