In a dazzling display of international cooperation, Alpha MBM Investments LLC, a UAE-based company is set to breathe new life into Uganda’s ambitious refinery project.
The energy giant is purportedly linked to Sheikh Mohammed bin Rashid Al Maktoum, a prominent member of the Royal family of the United Arab Emirates,
Last year, Sheikh Mohammed bin Rashid Al Maktoum, on a mission to expand his business empire, graced Uganda with his presence.
Now, his investment arm, Alpha MBM Investments LLC, is in talks with the Ugandan government to catalyze the dormant refinery project. The timing aligns with the conclusion of the Project Framework Agreement (PFA) between the government and the American-led Albertine Graben Energy Consortium (AGRC).
Minister of Energy and Mineral Development, Ruth Nankabirwa, confirmed the signing of a Memorandum of Understanding (MoU) on December 22, 2023, solidifying cooperation and negotiation terms between the Government of Uganda and Alpha MBM Investments LLC for the Refinery Project.
Negotiations for key commercial agreements commenced on January 16, 2024, and are anticipated to conclude within the next three months.
Among the potential investors in the estimated $5 billion refinery project were Africa Economic Aid Limited, Bakertilly Middle East Limited, St. Ignatius Energy, and the now spotlighted Alpha MBM Investments LLC.
Albertine Graben Energy Consortium’s suggestion to raise funds through stock exchange listing faced challenges, prompting the Ugandan government’s decision to explore partnerships with entities showcasing financial prowess.
Ruth Nankabirwa expressed optimism that Alpha MBM Investments LLC, with proven financial capability, would accelerate the project that lags behind schedule, with Uganda eyeing commercial oil production before the end of 2025.
The innovative approach includes the private investor (Alpha MBM Investments LLC) holding a 60% share, while the Uganda National Oil Company (UNOC) secures a 40% share.
Engineer Irene Bateebe, Permanent Secretary at the Ministry of Energy, hinted at an expedited process, anticipating that the signing of commercial agreements would coincide with a form of Final Investment Decision.
“Because immediately we sign the agreements, we shall see some works commence. So that is an innovative way, the works commence based on the equity of the tow partners,” Bateebe revealed.
“And for the National Oil Company, we have already begun programming their equity contribution. They have some portion and for the next financial year 2024/2025, we equally programmed some financial contribution. So they should be able to put on table their equity,” Bateebe further disclosed.
Alpha MBM Investments LLC now joins the ranks as the third investor in Uganda’s refinery project. In a saga that started in February 2015, the government initially selected a consortium led by Russia’s RT Global Resources LLC and South Korea’s SK Engineering & Construction Co.
However, negotiations with the Russian-led investors fell through, leading to a new bidding process that saw the American-led AGRC emerge as the preferred bidder.
The completion of the Front-End Engineering Design (FEED) in August 2021 by AGEC, the then lead investors, marked a significant milestone, gaining approval from the Petroleum Authority of Uganda in July 2022.
The National Oil and Gas Policy and the Petroleum (Refining, Conversion, Transmission, and Midstream Storage) Act provide the legal foundation for the project, emphasizing in-country refining to meet national and regional demands.
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