Uganda has taken a step forward, once again, to restore its interest to have a domestic refinery in place as part of the overall plan to maximize the benefits of the oil and gas sector.

The new players are a UAE-led consortium associated with His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai royal family. The firm known, as Alpha MBM, is an investment vehicle, part of the MBM family of investments listed also as private interest of the Royal Family.

Alpha MBM is in consortium for the refinery project with two companies with extensive oil and gas experience. They are SKA Energy, a sub-division of the SKA International Group, an Iraq-based operator. SKA’s business is in construction, fuel supply and logistics as well as refining and petrochemicals.

While Alpha MBM will be the primary source of investment capital, it is SKA’s construction and oil marketing experience that will form the commercial block of the consortium. Lastly is SPEC energy, a fairly well-known oil and gas integrated firm with a presence in the Middle East.

SPEC for the Uganda refinery project is presenting its operated refinery projects at four locations (Slemani, Iraq, Al Barham in Kirkuk, San Company refinery in Rajaf and Kyber refinery in Pakistan as well as other projects).

Presently, the refinery consortium is in expedited negotiations with the government of Uganda. The negotiations are time-sensitive because crude production is set to begin next year and project work on the East African Crude oil pipeline (EACOP) is further ahead. The EACOP company is finalizing its financing with its primary lenders which is expected to be concluded by May 2024.