(Ecofin Agency) - Oil companies have voiced interest in developing Uganda's planned oil refinery and an investor for the project is to be selected by February 2017, a top government official revealed.

According to Energy and Mineral Development Minister, Irene Muloni (photo), some new firms including China's Sinopec had expressed interest in the project and fresh talks were in progress.

“There are a number of companies that have expressed interest in joining us in the development of this refinery. We hope by February next year we should have identified a lead investor,” Muloni said.

Uganda which discovered oil fields in 2006 but is yet to commence production, began making efforts to secure a private investor for the project almost two years ago. But a previous tendering process failed earlier this year.

The East African country’s oil fields were discovered in the Albertine Rift Basin along its border with the Democratic Republic of Congo, but disputes over taxes and the feasibility of the refinery had delayed production, which is now planned for 2020.

Crude resources are estimated at 6.5 billion barrels, of which from 1.4 to 1.7 billion barrels is considered recoverable.

Muloni said Total had indicated it would take 10% stake in the refinery adding that Kenya and Tanzania have also committed to acquiring stakes of 2.5% and 8% respectively.

Anita Fatunji