Page 14 - DMEA Week 04 2022

DMEA NEWS IN BRIEF DMEA

COMPANIES A subsidiary of Sabic, the Middle East’s asked to explain if the oil refinery would not
largest petrochemicals company, Sabic Agri- hold up the other projects.
Sabic Agri-Nutrients signs Nutrients started operations in 2020 with an the same and they all have to move in tandem.
“The timelines for the three projects are
aim to become a global leader in the agri-
deal to buy stake in ETG nutrients industry and support the kingdom’s But it is also important to appreciate that these
Vision 2030 programme to diversify the
businesses operate differently.”
Inputs economy away from oil. up their act and conclude the Environment
“The people of the refinery could pick
Listed on the Tadawul stock exchange,
Saudi Arabia’s fertiliser producer Sabic Agri- the company is involved in the production and Social Impact Assessment (ESIA) and
Nutrients signed an agreement to buy a 49 of urea, ammonia, phosphate and other acquire financing as soon as their designs
per cent stake in ETG Inputs Holdco Limited specialised products. are approved,” Rubondo added in reference
(EIHL) as it aims to expand its operations THE NATIONAL to the memorandum signed in 2014 which
globally and boost growth. stipulated that no project should hold the
The deal is valued at $320 million, the other.
company said in a statement on Thursday. REFINING Whereas the US$4 billion Tilenga
“This move will help us expand our operated by TotalEnergies, the US$ 1.5 billion
footprint taking advantage of growth Refinery delay will not halt Kingfisher project operated by the China
opportunities to keep up with expected National Offshore Oil Corporation (CNOOC)
developments and to position the company Uganda’s march to first oil and the US$3.5billion East African Crude
as a leading player in the global agri-nutrients Oil Pipeline (EACOP) already have their
industry,” said Abdulrahman Shamsaddin, The refinery set to be constructed at Kabaale environmental and social impact assessments
chief executive of Sabic Agri-Nutrients. near Hoima in mid-western Uganda is approved by the National Environment
The company has strong capabilities expected to produce 60,000 barrels per day. Management Authority (NEMA), and their
in manufacturing, operation, planning, The refinery has in the past faced various front end engineering designs (FEED)
marketing, sales, supply chain, technology and setbacks characterized with entries and exits approved by PAU, the oil refinery is yet to
research, and aftermarket services, he said. of the would-be investors. receive any of these approvals.
EIHL specialises in blending and Ernest Rubondo, the executive director of The Albertine Graben Refinery
distributing fertilisers, seeds and crop the Petroleum Authority of Uganda (PAU) Consortium (AGRC), the lead developer of
protection items. It has a network of 350 disclosed recently that the refinery now looks the refinery worth US $4.27bn, submitted the
distribution centres across Africa that cater to like it is behind the Tilenga and Kingfisher facility’s front end engineering design (FEED)
the needs of farmers in the continent. projects and the East African Crude Oil to PAU for review at the end of last year.
“We are extremely proud to welcome Pipeline (EACOP). Rubondo said the review is expected to be
Sabic AN as our partner and look forward “The progress of the three projects has concluded at the end of this month.
to creating a sustainable impact across our made it look like the refinery is behind Meanwhile, the refinery’s environmental
markets,” said Ashish Lakhotia, chief executive schedule. If you look at the benchmarks, the and social impact assessment study began two
of EIHL. refinery is lagging behind the other three years ago in February, 2020, and is yet to be
“We are dedicated to addressing food projects,” Rubondo said on Jan.11 in Kampala. submitted to NEMA.
shortages and providing quality products to “It is, (however) important to note that The government has over the last 15
increase farmers’ yields and optimise their the three projects (Tilenga, Kingfisher and years stuck with the prospect of having a
earnings.” EACOP) are very much interconnected; you refinery in the country notwithstanding the
Food security has come into sharp focus cannot say the (oil) pipeline is ready when the independent experts’ questioning its viability
in the wake of the coronavirus pandemic. oil fields are not ready and you cannot say the in a landlocked nation.
Globally, companies are boosting their oil fields have started when the pipeline is not The licensed international oil companies
investments in sectors related to agriculture ready because the oil will not have anywhere including; Total (now TotalEnergies), Tullow
and food. to go,” Rubondo told The Independent when (which has since sold its Uganda interest to

P14 www. NEWSBASE .com Week 04 27•January•2022