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Uganda Delays $4 Billion Kabaale Refinery FID Until 2027​

Uganda Delays $4 Billion Kabaale Refinery FID Until 2027


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Thursday, 06 August 2026 16:28
  • Uganda has postponed the final investment decision (FID) for the $4 billion Kabaale refinery to February 2027, pushing the project beyond the start of commercial crude production.
  • The delay means Uganda will begin producing crude oil before it can refine it domestically, leaving the country dependent on imported petroleum products.
  • The East African Crude Oil Pipeline (EACOP) has also slipped behind schedule as logistics disruptions linked to the Middle East conflict affect the project.
Uganda is preparing to produce its first commercial barrel of crude oil, but it will not have a domestic refinery ready to process the output. On Aug. 5, the Petroleum Authority of Uganda (PAU) announced that the final investment decision (FID) for the $4 billion Kabaale refinery, planned in Hoima district, has been postponed until February 2027.


The revised timeline marks another seven-month delay after the FID was previously expected in July, according to data published by Africa Energy Portal in November 2025.

The PAU did not disclose the reasons for the latest postponement. However, AfricaOne News reported that the front-end engineering design (FEED) study conducted by UOP Honeywell was only halfway complete in October 2025, making a July investment decision unrealistic.

The regulator confirmed that the engineering study remains underway but did not provide an update on its current level of completion. The refinery is not the only Ugandan energy project experiencing schedule slippages.

The PAU also said that the East African Crude Oil Pipeline (EACOP), the 1,443-kilometer heated pipeline linking oil fields in western Uganda to Tanzania's port of Tanga, has fallen behind schedule.

The regulator attributed the delays to logistics disruptions caused by the conflict in the Middle East but did not announce a revised completion timeline.

Two-Decade Project Has Seen Multiple Setbacks

The Kabaale refinery project has experienced repeated delays over the past two decades. The project has changed investors three times since it was first proposed. Russia's RT Global Resources withdrew from the project first. The Albertine Graben Refinery Consortium later assumed the role before also exiting.

UAE-based Alpha MBM Investments eventually signed a memorandum of understanding in December 2023 and an implementation agreement in March 2025, as previously reported by Agence Ecofin.

The project's ownership structure now appears to have stabilized. Alpha MBM Investments will hold a 60% stake, while the state-owned Uganda National Oil Company (UNOC) will retain the remaining 40% in the refinery, which is designed to process 60,000 barrels of crude oil per day.

Meanwhile, Uganda still expects to begin commercial crude production in late 2026 or early 2027. As a result, the country will continue importing the petroleum products it needs until the refinery becomes operational.

According to Africa Energy Portal, Uganda currently spends more than $2 billion annually on petroleum product imports.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange J. A de Berry Quenum


 
Mafuta sio ya Tanzania 😂🤣😂.
na tunayajengea refinery sasa kuna shida? 😂😂😂 aya tuambie wewe unajengea refinery na crude kutoka wap 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂 infact the current state of hormuz is closed, aya elezea bila kulia
 
Wanataka kuwrite the narrative with their 15% shares. 😂 😂
It's like mtoto wako ndogo WA 7 years anapanga kuuza nyumba yako wakati hauko. Kwanza hata hajui penye documents za hizo nyumba ziko.

That's the same case with Tanzania 🤣🤣😂
 
na tunayajengea refinery sasa kuna shida? 😂😂😂 aya tuambie wewe unajengea refinery na crude kutoka wap 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂 infact the current state of hormuz is closed, aya elezea bila kulia
Hakuna refinery mnajenga🤣🤣😂
 
It's like mtoto wako ndogo WA 7 years anapanga kuuza nyumba yako wakati hauko. Kwanza hata hajui penye documents za hizo nyumba ziko.

That's the same case with Tanzania 🤣🤣😂
Wacha watulizwe kutoka kwa aibu ya Dangote kuwakataa. 😂 😂 😂 Kazi safi by CCM.
 
alafu mbna unaruka swali tuambie crude mnatoa wap 😂
Mwenye anajenga refinery alishawaambia penye atatoa crude oil, lakini mwenye bado analishwa na mzazi juu Hana uwezo wakujilisha bado anaulizia penye tajiri atatoa mafuta. Majaabu🤣🤣😂
 
Mwenye anajenga refinery alishawaambia penye atatoa crude oil, lakini mwenye bado analishwa na mzazi juu Hana uwezo wakujilisha bado anaulizia penye tajiri atatoa mafuta. Majaabu🤣🤣😂
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