Uganda is currently in negotiations with a consortium spearheaded by South Korea's SK Engineering regarding the development of a crude oil refinery in the country, with an investment of $4 billion.The group includes SK KBD Global Investment Partnership, Private Equity Fund, China State Construction Engineering Co-operation, Haldor Topsoe and Maestro Oil and Gas.

This decision is coming after the government postponed talks with a group led by Russia's Rostec Global Resources for the refinery project.Uganda’s Energy Ministry in a statement said that RT Global Resources’ group made extra demands before signing the deal with the government in June.“Consequently Government was left with no choice but to halt negotiations and draw the bid bond. The Government is now proceeding to invite the Alternate Bidder-SK Engineering & Construction for negotiations,” Hon. Irene Muloni (photo), the Minister of Energy and Mineral Development, told Energy Business Review.

The $4bn refinery project comprises of the construction of the 60,000 bpd refinery and a 205km oil-product pipeline. The refinery is to process the hydrocarbon reserves discovered in the country in 2006.

The Ugandan government intends to invest 40% in the building of the refinery, with an option to divest interests to partner states in the East African Community.

Anita Fatunji