Uganda Could Increase Refinery Stake

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Uganda’s planned refinery could cost more than originally estimated. The increase for the project isn’t in the construction cost but in the fact that Uganda could acquire more than its planned 8% stake in the project. The 60,000 bpd refinery had an initial price tag of around $2 billion.

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The consortium made up of Saipem, Yaatra Ventures America and Intra-continent Asset Holdings holds 60% of the planned project. Uganda, Kenya, Tanzania, Rwanda and Burundi were expected to take 8% each to complete the remaining 40%. However, Irene Muloni, Ugandan Oil Minister, said that to date only Tanzania has taken its full share of 8%. Kenya took 2.5%. Rwanda and Burundi have so far not taken their shares. As a result, Kampala plans to acquire the remaining shares.

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According to The East African, Ugandans are likely to dig deeper into their pockets to finance the construction of the refinery even though taking just the 8% would put the country heavily into debt.

Hussein Boffu runs a consultancy helping elite entrepreneurs reach their goals through actionable business planning. Contact him via email at hussein.boffu@tanzanapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.