Uganda: the country builds its first oil refinery.

Uganda has taken a decisive step in the development of its oil sector with the signing of an agreement with Alpha MBM Investments LLC, based in the United Arab Emirates (UAE), to build its first oil refinery in the western Albertine Graben region.

According to a press release issued by State House late on Saturday, Alpha MBM Investments will hold a 60% majority stake in the refinery, which will be located in Kabaale, in the Hoima district. The remaining 40% will be controlled by the state-owned Uganda National Oil Company.

The signing ceremony took place in the presence of Ugandan President Yoweri Museveni at State House in Entebbe, marking a major step forward for the country's emerging hydrocarbon industry. "This oil refinery is not just about fuel; it's about Uganda producing and exporting refined products instead of importing them," said Mr Museveni. "We must stop exporting raw materials and add value to everything we produce.

At an estimated cost of four billion dollars, this refinery will have a processing capacity of 60,000 barrels per day. The project also includes the construction of a 212 km multi-product pipeline linking the refinery to a storage terminal at Namwabula, in the Mpigi district.

The discovery of 6.5 billion barrels of oil in 2006, of which 1.4 billion barrels were deemed commercially exploitable, has sparked keen interest in the development of Uganda's energy sector. This refinery project is a major step forward in the country's drive to control its production and optimise the use of its natural resources.