Geza Ulole
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Uganda signs final oil refinery pact with UAE investor
Franklin Draku
August 19, 2025
- Mr Museveni said the signing marks the process of ending the export of raw materials as the country transitions towards the export of finished products.
The announcement sealing the deal was made by President Museveni on Saturday.
“I want to thank His Highness Sheikh Mohammed Bin Maktoum and our friends from the UAE for their commitment to investing in Uganda.
Today, I witnessed the signing of a historic oil refinery implementation agreement between Uganda and Alpha MBM Investments LLC, a company based in the UAE. This agreement will see the construction of a crude oil refinery in Hoima District, with a capacity of 60,000 barrels per day,” Mr Museveni wrote on his official X page.
He said the signing marks the process of ending the export of raw materials as the country transitions towards the export of finished products.
“The oil refinery is not just about fuel but also about Uganda producing and exporting refined products instead of importing them. We must stop exporting raw materials and instead add value to everything we produce,” he said.
Ms Ruth Nankabirwa, the minister of Energy and Mineral Development, also took to her official X account to announce the deal, which she signed on behalf of the government of Uganda.
“Today, on behalf of the Government of Uganda, I signed the Implementation Agreement for Uganda’s Oil Refinery with a capacity of 60,000 barrels per day, marking a historic step in our Nation’s Oil & Gas journey. This is transformative for our economy, our people, and our future,” she posted.
With the deal sealed, Uganda aims to take a step further in joining the group of oil-producing countries, something that for years remained a dream since the first discovery of oil in the country decades ago.
Mr Museveni said the UAE-based companies also signed several other agreements that will spur development.
“I also witnessed the signing of five other agreements with our UAE investors across various sectors, including aviation, tree planting, a digital land management system, logistics cargo hubs, storage chain facilities, and a comprehensive digital payment system for government transactions. I welcome them,” he said.
Delayed construction
The government of Uganda entered into negotiations with Alpha MBM investments after Albertine Graben Energy Consortium (AGEC) bowed out of the deal. The $4 billion (Shs15.2 trillion) was to build and operate the Greenfield Oil Refinery at Kabaale.
Under the deal, Alpha MBM Investments will take control of 60 percent of the shares, while the Uganda National Oil Company retains 40 percent.
According to government documents, the 60,000-barrel-a-day refinery project is part of the government's plan to build a petrochemical industry from Uganda’s oil and gas resources.
The project also involves a 211-kilometer multiproduct pipeline from Kabaale to a distribution complex in Namwambula -Mpigi District, a refined product storage terminal in Namwabula – Mpigi, and a raw water pipeline from Lake Albert to the refinery in Kabaale.
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