AfrOil: UNOC expects FID on Hoima refinery project by end-2024

Uganda National Oil Co. (UNOC) said on February 13 that it expected the Alpha MBM Investments of the UAE to make a final investment decision (FID) on the construction of the Hoima oil refinery by the end of 2024.

“The final investment decision, which is proceeding with a project based on profitability, among others, is expected before the end of this year. Key agreements – namely, shareholders agreement, crude suppliers agreement and host government [agreement] – have been drafted and await completion of negotiations with Alpha MBM Investments (now the lead partner) before they are signed,” UNOC said.

The company added that construction and subsequent commission of the refinery was scheduled for 2025 and 2028 respectively.

Uganda had previously initiated talks for the development of the $4bn, 60,000 barrel per day (bpd) refinery with undisclosed partners from Africa, the Middle East and China in August 2023. It took this step after Albertine Graben Refinery Consortium (AGRC) was unable to meet deadlines due to difficulties in obtaining funding.