KAMPALA Uganda--Uganda has started negotiations with two
consortiums to build the country's first oil refinery, the energy
and minerals ministry said Tuesday.
The $2.5 billion, 60,000 barrels-a-day refinery in the Lake
Albertine Rift Valley is expected to provide a significant spur to
the development of Uganda's vast oil fields, along the country's
western border, that are believed to contain as much as 3.5 billion
barrels of crude.
One of the consortiums is led by South Korea's SK Energy Co. and
the other is a grouping under Russia's state-owned RT Global
Resources, a spokeswoman for the ministry said in a statement.
"The two consortia will be expected to submit their respective
best and final offers by the end of August 2014," said Fred
Kabagambe Kaliisa, the ministry's permanent secretary.
The winning bid is expected to be announced by the end of the
fourth quarter to pave the way for the start of construction early
next year, government officials said.
Company officials could not be reached for immediate
comment.
Uganda also plans to start awarding fresh oil and gas
exploration licenses next year after an eight-year freeze, in
attempt to speed up the development of its largely unexplored oil
industry.
Four international companies had submitted detailed proposals
for the refinery to the ministry earlier this month. The proposal
by Japan's Marubeni Corp. (8002.TO) was not evaluated due to lack
of a bid bond, while the Petroleum Pipeline Bureau proposal did not
satisfy the requirements requested by government, the ministry
said.
Write to Nicholas Bariyo at nicholas.bariyo@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires