{"id":5238,"date":"2016-10-03T18:29:22","date_gmt":"2016-10-03T18:29:22","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=5238"},"modified":"2017-01-24T18:10:56","modified_gmt":"2017-01-24T18:10:56","slug":"ugandas-refinery-project-hits-major-setback","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/ugandas-refinery-project-hits-major-setback\/","title":{"rendered":"Uganda\u2019s Refinery Project Hits Major Setback"},"content":{"rendered":"

Uganda\u2019s Assistant Commissioner in the Ministry of Energy and Mineral Development Dozith Abeinomugisha has said the government is back to the market to look for a new investor after the alternate bidder SK Engineering and Construction backed out following the exit of the preferred lead investor Russia\u2019s RT Global Resources<\/a> in July.<\/p>\n

According to Abeinomugisha Uganda will also restructure the entire oil refinery project from the earlier preferred Public Private Partnership to make it a Public led project where the government will hold the majority share.<\/p>\n

The push for a refinery<\/a> dates back to 2010\/11 when Foster Wheeler Energy Limited from the United Kingdom which conducted a feasibility study recommending that the development of 60,000 barrels per day refinery.<\/p>\n

Foster Wheeler Energy Limited Ltd said a 60,000 barrels per day refinery was commercially viable with a Net Present Value (NPV) of US$ 3.2 billion at a 10% discount rate and an Internal Rate of Return (IRR) of 33%.<\/p>\n

Foster Wheeler Energy Limited Ltd also recommended the size and configuration of the refinery, location, financing options, social and environmental assessment, among others. The current plan is the development of a refinery in a modular manner.<\/p>\n

The RT Global Resources led consortium that included Telconet Capital Ltd Partnership, VTB Capital PLC, Tatneft JSC and GS Engineering & Construction Corporation saw negotiations with the Uganda government on issues including: the Project Framework Agreement, Shareholders Agreement, Implementation Agreement and the Escrow Agreement broke down<\/a> after more than 16 months.<\/p>\n

Members of the SK Engineering and Construction led Consortium included SK \u2013 KDB Global Investment Partnership Private Equity Fund, China State Construction Engineering Corporation Ltd, Haldor Topsoe A\/S and Maestro Oil and Gas Solutions (MOGAS) DMCC.<\/p>\n

Over firms that had submitted proposals for the project and had been shortlisted included China Petroleum Pipeline Bureau (CPPB)\u00a0from China and Marubeni Corporation\u00a0from Japan.<\/p>\n

Two other firms which had earlier showed interest\u00a0PETROFAC and VITOL SA<\/a> from the UAE and Switzerand respectively did not submit proposals during the search for a lead investor with the Arab company indicating it had opted to concentrate on their core business in engineering, procurement and construction for the upstream petroleum sub-sector.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Uganda\u2019s Assistant Commissioner in the Ministry of Energy and Mineral Development Dozith Abeinomugisha has said the government is back to the market to look for a new investor after the … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":5024,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[459,2839,5286,5287,2836,2840,2841,1526,1586,2842,2001,2129,2200,2838,4172,2835,2833,2603,2680,2834],"class_list":["post-5238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-china-petroleum-pipeline-bureau","tag-china-state-construction-engineering-corporation-ltd","tag-dozith-abeinomugisha","tag-foster-wheeler-energy-limited","tag-gs-engineering-construction-corporation","tag-haldor-topsoe-as","tag-maestro-oil-and-gas-solutions","tag-marubeni-corporation","tag-ministry-of-energy-and-mineral-development","tag-mogas","tag-petrofac","tag-refinery","tag-rt-global-resources","tag-sk-kdb-global-investment-partnership-private-equity-fund","tag-sk-engineering-and-construction","tag-tatneft-jsc","tag-telconet-capital-ltd-partnership","tag-uganda","tag-vitol-sa","tag-vtb-capital-plc","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/08\/chad-refinery-museveni.jpg?fit=960%2C642&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1mu","jetpack-related-posts":[{"id":2554,"url":"https:\/\/www.oilnewskenya.com\/index.php\/russias-rt-global-resources-wins-bid-ugandas-refinery-prject\/","url_meta":{"origin":5238,"position":0},"title":"Russia\u2019s RT Global Resources Wins Bid for Uganda\u2019s Refinery Project","author":"","date":"February 17, 2015","format":false,"excerpt":"RT Global resources has been selected as the preferred bidder for the Uganda Refinery Project \u00a0following evaluations by a team from the Government and Taylor Dejongh, Government\u2019s Transaction Advisor. \u201cWe are pleased that the two bidders responded to the Request for Final Offers, from which RT Global Resources emerged as\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/refinery.jpg?fit=1120%2C1018&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/refinery.jpg?fit=1120%2C1018&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/refinery.jpg?fit=1120%2C1018&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/refinery.jpg?fit=1120%2C1018&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/refinery.jpg?fit=1120%2C1018&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":4799,"url":"https:\/\/www.oilnewskenya.com\/index.php\/russias-rt-global-resources-consortium-pulls-out-of-uganda-refinery-deal\/","url_meta":{"origin":5238,"position":1},"title":"Russia’s RT Global Resources Consortium Pulls Out of Uganda Refinery Deal","author":"","date":"July 2, 2016","format":false,"excerpt":"Months after RT Global resources was selected as the preferred bidder for the Uganda 60000 barrel a day Refinery Project following evaluations by a team from the Government and Taylor Dejongh, Government\u2019s Transaction Advisor word is that the Russian consortium has pulled out of the $4 billion deal. 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The project is guided by the a Refinery Development Programme (RDP) formulated by\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/refinery.jpg?fit=1120%2C1018&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/refinery.jpg?fit=1120%2C1018&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/refinery.jpg?fit=1120%2C1018&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/refinery.jpg?fit=1120%2C1018&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/refinery.jpg?fit=1120%2C1018&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":1201,"url":"https:\/\/www.oilnewskenya.com\/index.php\/uganda-refinery-lead-advisor-expected-to-be-known-by-july-2014\/","url_meta":{"origin":5238,"position":4},"title":"Uganda Refinery lead advisor expected to be known by July 2014","author":"Samuel Kamau Mbote","date":"June 11, 2014","format":false,"excerpt":"Uganda has received detailed proposals for the role of lead investor for the development of 60,000 barrels per day oil refinery in Hoima. The proposals submitted by four of six shortlisted firms for the project including China Petroleum Pipeline Bureau (CPPB)\u00a0from China, Marubeni Corporation\u00a0from Japan, \u2013 Global Resources\u00a0from Russia and\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5561,"url":"https:\/\/www.oilnewskenya.com\/index.php\/the-petroleum-authority-of-uganda-appoints-new-directors\/","url_meta":{"origin":5238,"position":5},"title":"The Petroleum Authority Of Uganda Appoints New Directors","author":"","date":"January 16, 2017","format":false,"excerpt":"The Petroleum Authority of Uganda (PAU) has appointed Directors to support the implementation of its mandate of monitoring and regulating the exploration, development and production of petroleum together with the development and operation of pipelines and the refinery in Uganda. 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