Uganda Accepts Oil Refinery Offers From China & France, Finalizes Output Plan

Written by Makula Dunbar

From Business Day Live

Uganda has agreed with France’s Total and China’s CNOOC to build a much smaller refinery than it had wanted, in a compromise removing one obstacle to commercial output of the country’s oil.

The Ugandan government said on Monday it agreed with the two energy companies on an initial processing capacity of 30,000 barrels per day (bpd) — well below the 200,000 bpd it had earlier advocated.

Rather than build a major refinery in Uganda, Total and CNOOC have favoured a pipeline to export most of its crude via Kenya’s Indian Ocean coastline, saying there was insufficient local demand for a refinery of the size Uganda wanted.