A BRITISH FIRM WINS A LUCRATIVE CONTRACT TO CONDUCT THE FEASIBILITY STUDY ON THE CONSTRUCTION AND DEVELOPMENT OF AN OIL REFINERY IN UGANDA.
Business News By Leo Odera Omolo In Kisumu City
A British engineering firm based in the United Kingdom, Foster Wheeler Energy Ltd, has secured a contract to carry out a feasibility study for the construction and development of an oil refinery in Uganda.
The refinery development programme will go through five stages; feasibility study, project promotion and attraction of developers, and the front-end engineering design, engineering procurement and construction and commission and operation of the refinery.
The programme and details of the project were disclosed by the Permanent Secretary in the Ministry of Energy, Kabagambe Kaliisa at the weekend that the refinery feasibility study, which is expected to last for six months, will commence on January 2nd and be completed in mid 2010.
“The objective of the feasibility studies are to recommend the size, configuration, location, cost and financing option of the refinery and the attendant infrastructure, and market for the refined product’s preliminary environmental assessment of the possible impact of refinery development,” Mr. Kaliisa said.
The study will also recommend possible areas for private sector participation.
Mr.Kaliisa further stated that Foster Wheeler Energy Ltd was selected in accordance with the international procurement process, which started in August 2009.
“The process had attracted 35 companies worldwide, which expressed interest in undertaking the study.”
Out of these bidders, six were contracted to submit their proposals and that Foster Wheeler Energy Ltd, was considered the best of all.
Foster Wheeler is a global engineering and construction contractor with a reputation for delivering high quality, technically advanced, reliable facilities and equipment on time.
Ugandan government had expressed its wish to have its oil and gas refined locally as opposed to other interested groups, which had suggested that the oil be exported in the crude form. Suggestion to use the refinery facilities in Mombasa were shot down by President Museveni who insisted that the logistics of using the Mombasa based refinery would be too exorbitant, and insisted that the development of the local refinery was the better option.
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