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Uganda signss deal with UAE Investment Firm over Oil Refinery

The office of President Yoweri Mueveni said that Uganda signed an agreement on Saturday with UAE-based Alpha MBM Investments to acquire a 60% share in the crude oil refinery at Kabaale in Hoima District.

The country's state-run Uganda National Oil Company will retain the remaining 40% stake in the 60,000-barrel-per-day refinery, according to the statement.

In addition to the refinery agreement, Ugandan and UAE investors signed five more agreements in different sectors.

Uganda's Energy Minister said earlier this year that the country is in negotiations with Alpha MBM Investments to build a planned oil refinery worth $4 billion.

Website of the UAE-based investment company says that it is headed by Sheikh Mohammed Bin Maktoum, who is a member in Dubai's royal house.

The Ugandan government and Alpha MBM Investments started discussions on key commercial terms on 16 January and were expected to be concluded within three months according to Ruth Nankabirwa, Minister of Energy and Mineral Development.

The 60,000-barrel-per-day refinery is a cornerstone of Uganda's emerging hydrocarbons industry, playing a vital role in the country's energy strategy. (Reporting and writing by Elias Biryabarema in Bengaluru, editing by Daniel Wallis).

(source: Reuters)