The Uganda government has agreed to core project terms for the Uganda Refinery Project with the Albertine Graben Refinery Consortium (AGRC) to develop a greenfield oil refinery in the south-western district of Hoima.
According to the latest press release by the Ministry of Energy and Mineral Development, the selection of AGRC follows a thorough review process of over 40 companies that expressed interest to develop the much-anticipated oil refinery.
The AGRC consortium is made up of General Electric (GE) Oil and Gas, YAATRA Ventures LLC, Intracontinent Asset Holdings Ltd (IA) and Saipem SpA, as an Engineering, Procurement and Construction (EPC) partner.
According to the press release the Consortium has proposed to Government a financing approach and a path to establish, develop and operate a commercially viable refinery company with a strategic benefit to the country and the region.
The agreement of the core project terms signals the start of Government discussions and negotiations with the Consortium on the Project Framework Agreement (PFA).
“The PFA will detail the proposed solutions, validation of the solutions, risk mitigation measures, and additional due diligence necessary for accelerating investments and financing for the project,” the press release reads in part.
The Project Framework Agreement is expected to conclude and be signed within the next two months, with the Consortium having benefit of exclusivity during the period of negotiations.
“Should the parties agree on all terms, the Consortium will be granted the rights and licenses to develop and manage the refinery as lead investor in a joint venture partnership with Government,” the press release reads.
The signing of the Project Framework Agreement will in turn pave the way for commencement of pre-Final Investment Decision (FID) activities such as Front End Engineering and Design (FEED), Project Capital and Investment Costs Estimations (PCE), Environmental and Social Impact Assessments (ESIA).