Page 8 - DMEA Week 11 2023

DMEA POLICY & SECURITY DMEA

Uganda and Algeria sign

partnership for oil and gas projects

UGANDA UGANDA National Oil Co. (UNOC) and its The project is anticipated to cost around $4bn
Algerian counterpart Sonatrach have signed a and will process waxy crude from Lake Albert
memorandum of understanding (MoU) for the oilfields to provide products to the local and
development of oil and gas projects in Uganda. neighbouring markets.
The deal was confirmed over the weekend when In February 2022, Minister of Energy and
UNOC made a short statement on Twitter say- Mineral Development Ruth Nankabirwa held
ing: “The MoU covers oil and gas co-operation talks about the status of the refinery with the
– upstream, midstream (refining and petro- lead developer, the Albertine Graben Refinery
chemicals), downstream, capacity building, and Consortium (AGRC). The group holds a 60%
oil and gas services”. share in the project, with the remainder held by
The MoU was signed by Dr Michael the Uganda National Oil Co. (UNOC) through
Mugerwa, general manager of Uganda Refinery its URHC subsidiary.
Holding Co. (URHC), and Sonatrach’s CEO, AGRC is comprised of US-based Baker-
Toufik Hakkar. The signing came during Ugan- Hughes GE, Italy’s Saipem and Mauritian-regis-
dan President Yoweri Museveni’s recent three- tered Yaatra Africa and Lionworks Group.
day visit to Algeria, in which he had said that the Discussions on fast-tracking economic inte-
country was looking for Algeria to invest in its gration were also high on the list, according to
planned refinery. Museveni, who said that it was integral in “facili-
“We want to build an inland refinery,” Musev- tating prosperity for the African people”.
eni said, adding: “It is absolutely necessary He added: “This has taken a long time, but
because it will cut transport costs, seeing that we we are moving steadily. We have now agreed on
are far away from the coast”. the Continental Free Trade Area-CFTA […] In
Uganda’s planned 60,000 barrel per day (bpd) order for that to happen, you must have peace on
refinery at Kabale in Hoima district is expected the continent and that’s why therefore the discus-
to begin production by 2025, pending a final sion between His Excellency and myself focused
investment decision (FID) to be made in June. on the issue of peace in Africa.”™

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