The final investment decision (FID) on commercial oil and gas production in Uganda will be made in the first months of this year, to pave way for the construction of the final structures in the sector.

These will include the oil refinery in Hoima district valued at $3.5 billion, two central processing facilities, as well as the $3.2 billion crude oil export pipeline from Hoima to the Indian Ocean Coast of Tanga in Tanzania.

The government, through the National Oil Company, also plans to construct the Kampala Storage Terminal in Wakiso district worth $51 million, which will act as a collection centre for refined fuel for both the local and export markets.

It is estimated that the facilities that will facilitate commercial oil production will cost about $15 billion.

The FID had been expected by the end of June last year, but a combination of falling global oil prices as well as the disruptions caused by the onset of the COVID-19 pandemic slowed down the progress.

The field pipelines, the export pipelines and the central processing facilities are the main pre-requisite for the production of crude, while the refinery is expected to be completed later.

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3rd February 2021