Picture: ISTOCK
Picture: ISTOCK

Nairobi/Kampala — Uganda, which plans to refine its own oil, says it will require as much as $70m to construct a storage facility for refined products on the outskirts of the capital, Kampala.

The East African country will initially build storage with capacity for 60,000m³, which it may upgrade to 138,000m³ if there is demand, Josephine Wapakabulo, CEO of Kampala-based Uganda National Oil Company, said on Thursday in response to questions.

Uganda, which plans to start oil production from its western Lake Albert region in 2020, will seek a joint venture partner for the project and will invite bids before the end of 2018, she said.

It already has storage for 30,000-million litres in the eastern town of Jinja.

Uganda signed in April a project framework agreement with the Albertine Graben Refinery Consortium, which includes a unit of General Electric, to develop a 60,000 barrel per day refinery. The facility in the oil-rich Hoima region will initially operate at half capacity before being upgraded.

The Ugandan government will have a 40% stake in the refinery. Of that shareholding, 40% will be offered to Kenya and Tanzania, which "previously expressed interest", she said. The government has said Kenya and Tanzania wanted 2.5% and 8% stakes, respectively.

France’s Total, China National Offshore Oil Corporation and London-based Tullow Oil are jointly developing Uganda’s crude finds of 6.5-billion barrels of oil resource that hold up to 1.7-billion barrels of recoverable oil.

Bloomberg

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