The $4 billion oil refinery project in Kabaale, Hoima District, has entered a decisive phase following the finalization of key agreements between the Uganda National Oil Company (UNOC) and Dubai-based Alpha MBM Investments LLC.
The project is a public-private partnership where Alpha MBM Investments holds a 60% majority stake, while UNOC (through its subsidiary, the Uganda Refinery Holding Company) retains 40% equiThe partners have shifted to a 100% equity-funded model to accelerate the project, moving away from previous debt-heavy structures.
The refinery is designed to process 60,000 barrels of crude oil per day, producing petrol, diesel, jet fuel, LPG, and petrochemicals.
Strategic Impact: The facility is expected to be operational by 2029–2030, aiming to save Uganda approximately $2 billion annually in petroleum import costs.
Preparatory site works are underway at the Kabalega Industrial Park. A Final Investment Decision (FID) is targeted for July 2026, with construction expected to begin shortly thereafter.
Related Infrastructure
The refinery is a central piece of Uganda’s energy strategy, which also includes:
EACOP Pipeline: The 1,443km East African Crude Oil Pipeline is approximately 79% complete as of January 2026, with the first crude oil exports via Tanzania expected by October 2026.
Multi-Product Pipeline: A 211-kilometer pipeline will transport refined products from the Hoima refinery to a storage terminal in Namwabula, Mpigi District.
Note by Alessandro Bazzoni