Writes Leo Odera Omolo
INFORMATION emerging from the Ugandan capital, Kampala reveals that the government has floated an international tender for consultancy service on the logistics for building a USD 2 billion oil refinery in Kabaale, Hoima district, some 420 kilometers South West of the capital, Kampala.
Officials at the state-owned Petroleum Exploration and Production {PEPD} at the Ministry of Energy confirmed this adding that they were also looking for a lead investor for the refinery, which will have an initial capacity of 60,000 barrels of crude oil per day.
“The search for the lead investor will start next month through international bidding, according Mr Ernest Kubondo, the Commissioner in-charge of PEPD, the planned refinery will be operated under a public private partnership.
The Ministry of Energy is soon acquiring some 29 square kilometers of land from local communities as part of the preparatory phase for the refinery.
The successful consultant will conduct a route survey from the Kenya’s coastal port City of Mombasa to Kabaale to Kasese limitations for transport and recommend specific location of the site for the refinery and its boundaries. advise on shipment expected during construction and overall operation of the refinery,’ said Kabambe Kaliisa, the Permanent Secretary at the Ministry of Energy.
The PS said the interested consultants are required to obtain bid documents after paying USD 40 {Ushs 100,000}and submit them by June 21,2012.
Notice of he best bidder will be issued and published on July 11 and contract awards by the end of July in an exercise to be carried out under the Public Procurement and Disposal of Public Assets Act of 2003.
Uganda consumes about 550,000 cubic meters of refined fuel annually,85 per cent of which is imported through Kenya and 15 per cent through Tanzania.
Local production of crude oil has not started,
Tullow Oil PLC a British oil exploration firm, jointly with Total of France and China National Offshore Oil Corporation are currently working on details of refining 200,000 barrels per day of crude oil from Lake Albert basin by 2015.
“The parties are currently discussing how the investment in the project to build a refinery near Lake Albert will be shared,” the report quoted Elly Karuhanga, the chairman of the Uganda Chambers of Mines and Petroleum.
Major production from the Lake Albert basin is expected approximately 36 months after Ugandan government approves a plan for the development.
“Options are being weighed to allow the sale of small volumes of crude oil from well testing to industry as well testing as some small scale power projects,” said George Casenove who is in charge of Tullow’s media relations.
Uganda’s nascent oil and gas industry provides opportunities for both local and international investors to make money following the free-market policy adopted in the early 1990s.
“There are opportunities in the entire value chain from exploration,”said Energy Minister Irene Mukoni.”
Ends