Uganda has officially entered into an agreement with UAE-based Alpha MBM Investments for a 60 percent stake in a new crude oil refinery located in Kabaale, Hoima district. The state-run Uganda National Oil Company (UNOC) will retain the remaining 40 percent ownership of the refinery, which is expected to process 60,000 barrels of oil per day.
The signing took place on Saturday and was confirmed in a statement from the office of President Yoweri Museveni. In addition to the refinery agreement, Uganda and UAE investors also finalized five other agreements spanning various sectors.
Earlier this year, Uganda’s Minister of Energy, Ruth Nankabirwa, revealed that the country had been in discussions with Alpha MBM Investments to develop the $4 billion refinery. Talks on key commercial terms between the Ugandan government and the investment firm began on January 16, with expectations that negotiations would conclude within three months.
Alpha MBM Investments, which is headed by Sheikh Mohammed bin Maktoum, a member of Dubai’s royal family, is set to play a pivotal role in Uganda’s burgeoning oil industry. The 60,000-barrel-per-day refinery is considered a cornerstone of Uganda’s broader energy strategy, marking a significant step toward the development of the nation’s hydrocarbons sector.