Update on Uganda Refinery Development

Dr. Michael Nkambo Mugerwa

10th April 2019
 Presentation Outline

 Uganda Oil & Gas Sector Governance

 UNOC Overview

 Uganda Refinery Holding Company (URHC)

 Uganda Refinery Project

 Kabaale Petro-based Industrial Park (KIP)

 Concluding Remarks
 Uganda Oil & Gas Sector Governance

Sector Roles Responsible Institution

Regulation Petroleum Authority of Uganda (PAU)

Policy, Investor Promotion

Ministry of Energy & Mineral Development (Directorate of Petroleum)
& Licensing

Standards & Testing Uganda National Bureau of Standards (UNBS)

Commercial & Business Uganda National Oil Company (UNOC)

Fiscal Regime Ministry of Finance, Planning and Economic Development

 UNOC Overview

 UNOC was incorporated in June 2015 under the Companies Act (2012) as a private limited
liability company
 Wholly owned by the Government of Uganda – two shareholders:
o Minister of Energy and Mineral Development (51%)
o Minister of Finance, Planning and Economic Development (49%)
 Managed by Board of Directors and Executive Management Team, with current staff of 74
and growing
 Subsidiaries:
o The Uganda Refinery Holding Company Ltd – UNOC’s interest in Refining and
Petrochemicals
o The National Pipeline Company (U) Ltd – UNOC’s interest in Pipeline and Storage
 Uganda Refinery Holding Company

URHC’s overall strategic objective within UNOC is to manage the commercial and business interests
of the State in the Uganda Refinery and the Kabaale Industrial Park, yielding five (5) current strategic
initiatives:
 Secure investors in the Refinery and the Kabaale Industrial Park (KIP), including finance for GOU
Equity stakes, and credit support for Debt Completion

 Negotiate and execute all relevant Refinery and KIP Agreements, including, inter alia, Project
Framework, Commercial, Joint Venture, Implementation, Shareholder and EPC Agreements

 Ensure that the FEED, ESIA, RAP, Permitting, FID, EPC and Commissioning for the Refinery
Project are executed within budget and schedule during the calendar years 2019 to 2024

 Develop, operationalize and manage the Kabaale Industrial Park in Joint Venture with an
internationally recognized partner, and establish and market KIP as a petro-based complex

 Ensure that the Refinery and all KIP projects are operated and maintained within the standard of
the Reasonable and Prudent Operator
 Uganda Refinery Project

 Capacity of 60,000 bpsd to be located in Buseruka Sub-County, Hoima District

 Government of Uganda will be a shareholder in the Refinery through the Uganda Refinery Holding
Company – up to 40% equity. East African States have been invited to participate.

 MoU with Upstream Oil Companies stipulates a first right of call for the Refinery on the produced crude

 RFCC Final Refinery Configuration approved in March 2019

 LPG, Euro V Gasoline, Jet A-1 Fuel, Euro V Diesel and Fuel Oil

 Strategic Choice: Propylene  Plastics and Petrochemicals; & Naphtha  Nitrogenous Fertilizers

 FEED to value engineer & verify projected CAPEX estimated at US$3.5 Billion

 Final FEED completion expected by December 2019; FID-Ready target is September 2020

 Projected IRR exceeds 20% (conservative economic model)

 Crude oil netback price

 Refined products import parity pricing

 Kabaale Industrial Park

 MEMD acquired 29.57 km2 (7,307 acres) of land to be developed into an oil and gas industrial park, in
Kabaale, Hoima District

 UNOC’s role is to lead the development, operationalization and management of the industrial park with
an internationally recognized strategic JV partner

 KIP to accommodate:
 Uganda’s 2nd International Airport – Currently under Construction
 Crude Oil Export Hub – FEED finalized; Awaiting FID
 Uganda Refinery – Under Pre-FID
 Polymer and Fertilizer Industries – Investor Promotion
 Light Industry – Investor Promotion
 Agro-Processors – Farmer Sensitization & Investor Promotion
 Warehousing & Logistics – Investor Promotion
 KIP Master Plan
 Approved by National Physical Planning Board
 Provides for the development of utilities (power, water, gas), infrastructure (road network, ICT), services (waste
water treatment, solid waste handling), etc.
KIP
 Concluding Remarks

 UNOC represents the commercial and business interests of the State in Uganda’s
Oil & Gas Sector
 UNOC’s key strategic themes:
 Partner Strategically
 Invest in People
 Build the Business
 In the Midstream sub-sector, Uganda intends to reap the macroeconomic
benefits of retaining within country the petroleum products, petrochemicals &
fertilizer value chains
 Key challenges include project financing and megaproject execution
 A key UNOC driver is Capacity Building through National Content development
and Technology Transfer
THANK YOU