Uganda has formalized an agreement with Alpha MBM Investments, a UAE-based firm. The deal, signed Saturday, grants the UAE company a 60% stake in Uganda’s planned oil refinery.
This significant project will be located in Kabaale, Hoima District. President Yoweri Museveni’s office confirmed the development in a statement.
Uganda’s national oil company will maintain a 40% ownership in the 60,000-barrel-per-day facility.
Alongside the refinery agreement, Uganda and UAE investors also signed five additional pacts across diverse sectors.
Earlier this year, Uganda’s energy minister had announced ongoing negotiations with Alpha MBM Investments regarding the $4 billion refinery.
Alpha MBM Investments is reportedly led by Sheikh Mohammed bin Maktoum, a member of Dubai’s royal family.
Discussions on crucial commercial aspects commenced in mid-January between the Ugandan government and the investment firm.
Energy Minister Ruth Nankabirwa had anticipated the conclusion of these talks within three months.
The 60,000-barrel-per-day refinery is central to Uganda’s burgeoning oil and gas sector.
This crucial infrastructure is expected to play a key role in fulfilling the nation’s energy objectives.
The project signifies a major step forward for Uganda’s hydrocarbons industry.