Mu­loni: Oil re­fin­ery could be de­layed till 2022 but pro­duc­tion date un­changed

The East African - - NEWS -

The front-end engi­neer­ing de­sign, or FEED, for Uganda’s planned petroleum re­fin­ery, ini­tially due for com­ple­tion last year, has only just be­gun, En­ergy Min­is­ter Irene Mu­loni said Wed­nes­day. The de­lay in start­ing up — now ex­pected in 2022 — will set back Uganda’s plans to re­duce fuel im­ports and start ex­port­ing to neigh­bour­ing coun­tries.

“FEED is just be­gin­ning and it will im­pact the com­ple­tion of the re­fin­ery,” Ms Mu­loni said in Kampala. “For the re­fin­ery there is def­i­nitely a slip­page.”

A group led by Gen­eral Elec­tric is con­tracted to build the 60,000 bar­rel-a-day plant in the Hoima dis­trict of western Uganda. It will take oil from fields be­ing de­vel­oped by To­tal SA, CNOOC Ltd and Tul­low Oil Plc — due to start flow­ing in 2020. Plans have also been sub­mit­ted for a crude-ex­port pipe­line via Tan­za­nia, which will be com­pleted be­fore the re­fin­ery, Ms Mu­loni said.

Other part­ners in the Geled group are Yaa­tra Ven­tures LLC, Italy’s Saipem SPA and Kenya-based Fire­works Cap­i­tal. Uganda has said To­tal will also in­vest, as will the Tan­za­nian and Kenyan gov­ern­ments.

Mu­loni in­sisted Uganda is still tar­get­ing the start of oil pro­duc­tion in 2020, even though CNOOC has sug­gested out­put may be­gin a year later be­cause of de­lays to fi­nal in­vest­ment de­ci­sions.

The de­lay will set back Uganda’s plans to re­duce fuel im­ports.

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.