Uganda is negotiating with an investment company led by a member of Dubai’s royal family to develop a planned $4 billion refinery for some of its crude oil, its energy minister said on Tuesday.

Uganda in July last year terminated negotiations with a consortium that included a unit of US firm Baker Hughes over its failure to mobilise financing in time.

Uganda is counting on the 60,000 barrel-per-day refinery for its nascent hydrocarbons industry.

“Expressions of interest were received from several potential investors and they were evaluated … following which a memorandum of understanding was signed on the 22 of December 2023,” Minister of Energy and Mineral Development Ruth Nankabirwa said at a news conference.

Negotiations on the key commercial details between the government and United Arab Emirates-based Alpha MBM Investments started on January 16 and are expected to be completed within three months, she added.

Source: Business week