A UAE-backed company, Alpha MBM Investments, has secured a major contract to build Uganda's first crude oil refinery, marking a significant milestone in the country's energy sector. The 60,000-barrel-per-day (bpd) facility, located in Kabaale, Hoima District, is expected to refine locally extracted crude oil, reducing Uganda's reliance on imports and strengthening its energy independence.

The refinery project is a key component of Uganda's strategy to harness its oil reserves, particularly in the Albertine Graben region. The project is expected to drive industrialization, create jobs, and enhance the country's fuel supply, reducing dependence on imports while boosting regional energy security. According to a statement from President Yoweri Museveni's office, Alpha MBM Investments has acquired a 60% stake in the refinery, while Uganda's state-run National Oil Company will retain the remaining 40%.

This development follows Uganda's decision in January to select UAE's Alpha MBM Investments to help develop a $4 billion refinery to process some of its crude oil. The country had previously terminated negotiations with a consortium, including a unit of U.S. firm Baker Hughes, due to its failure to secure financing on time. Energy Minister, Ruth Nankabirwa, stated that the ministry received investment interest from four companies, including Alpha MBM Investments.

The refinery's construction is expected to take three years, with the Uganda National Oil Company (UNOC) and Alpha MBM Investments as project partners. Alpha MBM Investments, led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai Royal Family, brings significant financial strength and expertise to the project. "We are pleased to have a partner with financial strength and a solid reputation. Work on the refinery will commence immediately," said Minister of Energy and Mineral Development Ruth Nankabirwa.

Once completed, the refinery is expected to boost regional energy security and create new opportunities in the petroleum industry. The facility will refine crude extracted from the Albertine Graben region, increasing the continent's domestic fuel production and reducing dependence on imported petroleum products. With growing energy demands across Africa, the refinery will enhance regional supply, supporting economic growth and industrialization.

This development also positions Uganda as a key contributor to Africa's refining capacity, attracting foreign investment and strengthening energy security within the region. The project aligns with Uganda's strategy to maximize its oil reserves in the Albertine Graben region, fostering industrialization, job creation, and regional energy security.

The significance of this project extends beyond Uganda's borders, as it is expected to boost Africa's overall oil output by processing 60,000 barrels per day. This increased refining capacity will have a positive impact on the region's energy landscape, supporting economic growth and development.

In conclusion, the contract award to Alpha MBM Investments marks a significant milestone in Uganda's journey towards energy independence. The project's successful completion will not only benefit Uganda but also contribute to the growth and development of the African region as a whole.