Uganda signs development accord as East African oil industry builds momentum

A memorandum of understanding (MoU) signed by the Ugandan government and its upstream partners on 5 February paves the way for oil production to begin by setting parameters for the development of sector infrastructure. This includes the construction of a refinery on the shores of Lake Albert, construction of a pipeline to export crude to Kenya’s coast, and development of a power plant to run on petroleum. Tullow said the agreement covered integrated development of the upstream, an export pipeline and a 60,000 b/d refinery to be developed in a modular manner starting with 30,000 b/d. The government is expected to select a lead investor to develop the refinery by the end of H1 2014.