The Ugandan government has signed a landmark implementation agreement with UAE-based Alpha MBM Investments LLC for the construction of a 60,000-barrel-per-day crude oil refinery in Kabaale, Hoima District. The deal, finalized on March 29, 2025, in the presence of President Yoweri Museveni at State House Entebbe, represents the culmination of 15 months of negotiations that began in January 2024.
Under the terms of the agreement, Alpha MBM will take a 60% stake in the project, while Uganda National Oil Company (UNOC) will retain the remaining 40%. The project is expected to commence construction before the fourth quarter of 2025 and represents a major milestone in Uganda’s journey toward energy independence and industrialization.
The comprehensive refinery project includes several components: a state-of-the-art refinery complex in Kabaale designed to process 60,000 barrels of crude oil daily, a modern storage terminal in Namwabula (Mpigi District) to ensure adequate fuel reserves, a 212-kilometer multi-product pipeline connecting the refinery to the storage terminal, and the Mbegu water abstraction facility with an advanced pipeline system to support operations. The total investment is estimated at $4 billion.
Alpha MBM replaced the Albertine Graben Energy Consortium as the project’s strategic investor in late 2023 after the previous consortium’s Project Framework Agreement expired without extension due to perceived lack of urgency. President Museveni emphasized the importance of the project for Uganda’s economic transformation, stating: “This oil refinery is not just about fuel; it is about Uganda producing and exporting refined products instead of importing.”
Sources: africaoilgasreport.com and chimpreports.com
