The Government of Uganda has officially announced that Russia's RT Global Resources-led consortium is the winner of the $2.5 billion oil refinery contract.
The team beat out competition from another team led by SK Group led Consortium from South Korea.
Energy and Mineral Development Minister Irene Muloni said on Tuesday the process of selecting the lead investor for the project had been highly competitive. She said:
“We have confidence that we will execute the Project Agreements and o ahead to develop Uganda’s Refinery Project.”
Uganda's Government said it will proceed to hold negotiations with RT Global Resources-led consortium starting in March 2015 with the aim of reaching an agreement within 60 days.
Telconet Capital Ltd Partnership, VTB Capital PLC, Tatneft JSC and GS Engineering & Construction Corporation are part of the winning consortium.
According to the Government, the SK Engineering and Construction-led consortium came short on key requirements of government including contributing to the private share and operating plan.
Members of the losing consortium include SK-KDB Global Investment Partnership Private Equity Fund, China State Construction Engineering Corporation Ltd, Haldor Topsoe A/S and Maestro Oil and Gas Solutions (MOGAS) DMCC.
Uganda’s refinery project is to be established under a public private partnership (PPP) contract with the Government holding up to 40% equity. It involves development of a refinery with a capacity of 60,000 BPD, development of crude oil and product storage facilities on site, as well as a 205-kilometer product pipeline to a terminal near Uganda’s capital city of Kampala.
Uganda’s Petroleum resources are now estimated at 6.5 billion barrels of oil initially in place from the 21 oil and gas discovering made in the country to date.