Uganda is targeting a final investment decision (FID) by February 2027 for its long-delayed $4 billion oil refinery project, as the country moves to accelerate development of its petroleum industry.
The Petroleum Authority of Uganda said engineering work has commenced on the planned 60,000-barrel-per-day refinery, marking a significant step toward advancing the project after years of delays.
The refinery is expected to be developed through a partnership between UAE-based Alpha MBM Investments, which is set to hold a 60 per cent stake, and the state-owned Uganda National Oil Company (UNOC).
Ugandan authorities said reaching the investment decision would represent a major milestone in efforts to establish domestic refining capacity and reduce dependence on imported petroleum products.
The country has been working to develop its oil sector following the discovery of commercially viable crude reserves, with the refinery expected to play a key role in supporting energy security and industrial growth.
Meanwhile, authorities disclosed that construction of the East African Crude Oil Pipeline (EACOP) has experienced slight delays due to disruptions linked to the conflict in the Middle East.
The pipeline, which is designed to transport crude from Uganda’s oil fields to the Indian Ocean coast in Tanzania, remains a central component of the country’s petroleum development plans.
Uganda expects the refinery and related oil infrastructure projects to boost economic activity, create jobs and strengthen its position as an emerging oil producer in East Africa.
