Uganda expects to reach a final investment decision (FID) on its planned crude oil refinery in February 2027, a milestone that could pave the way for the long-delayed development of the $4 billion project, according to the country’s petroleum sector regulator, Reuters reported.
The East African nation signed a memorandum of understanding (MoU) with UAE-based Alpha MBM Investments in March last year to develop the refinery after similar efforts involving investors from Russia and South Korea failed to move forward.
In a post published on the social media platform X on Wednesday, the Petroleum Authority of Uganda (PAU) said the refinery’s final investment decision is expected in February 2027 and confirmed that basic engineering work has already begun.
Under the agreement, Alpha MBM Investments is expected to hold a 60% stake in the refinery, while the remaining 40% will be owned by the state-run Uganda National Oil Company (UNOC).
Designed to process 60,000 barrels of crude oil per day, the refinery is expected to become a key pillar of Uganda’s emerging hydrocarbons sector as the country prepares to begin commercial oil production from fields in its western region.
In a separate post on X, the PAU said the East African Crude Oil Pipeline (EACOP), another major project considered vital to Uganda’s oil industry, is running slightly behind schedule due to disruptions linked to the conflict in the Middle East.