Oil refinery signing pushed back to Wednesday

March 26, 2018 in Business, Energy, Investment by Editor

March 26, 2018—The formal signing of an agreement between the government and the Albertine Graben Refinery Consortium (AGRC) to build the a $4 billion oil refinery in western Uganda was postponed from last Friday to this Wednesday.

Sources told 256BN the bitter fallout from the frenetic lobbying associated with this contract still continue and some senior government officials are attempting last ditch maneuvers to scuttle the deal in the interest of the losing Chinese bid. Suggestions have been made to refer back the issue to cabinet, but other officials insist the signing will take place in mid-week.

In August 2017, the government announced tentative acceptance of the bid by AGRC made up of General Electric Company’s Oil and Gas division, India’s YAATRA Ventures LLC (US), Intracontinent Asset Holdings Ltd (IA), and Italy’s Saipem SpA. Saipem will do the EPC (Engineering, Procurement, and Construction).

A Chinese consortium led by Guangzhou Dong Song Energy Group Company Limited, fell out at the last hurdle before a final decision by the government, due to differences with energy ministry officials over interpretation of ‘preferred bidder’.