Kampala: Uganda has officially signed an oil refinery agreement with UAE-based Alpha MBM Investments, granting the firm a 60% stake in the planned crude oil refinery in Kabaale, Hoima District, President Yoweri Museveni’s office announced in a statement on Saturday.
The state-run Uganda National Oil Company (UNOC) will retain the remaining 40% stake in the 60,000-barrel-per-day facility, a critical component of Uganda’s broader strategy to harness its oil resources for economic development.
In addition to the refinery agreement, Uganda and UAE investors signed five other investment deals spanning multiple sectors, further strengthening economic ties between the two nations.
Earlier this year, Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa, confirmed that discussions were underway to develop the estimated $4 billion oil refinery in partnership with Alpha MBM Investments. According to the company’s website, Alpha MBM is led by Sheikh Mohammed bin Maktoum, a member of Dubai’s ruling family.
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Negotiations on key commercial terms between the Ugandan government and Alpha MBM Investments began on January 16, with an initial timeline of three months for completion. The finalization of the agreement marks a significant milestone in Uganda’s efforts to establish a robust hydrocarbons sector.
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The refinery is set to play a pivotal role in Uganda’s energy strategy, ensuring domestic refining capacity, reducing reliance on imported petroleum products, and positioning the country as a regional energy hub.
