Russian firm pulls out of Uganda’s $4 billion oil refinery
Friday July 1 2016
A Russian consortium awarded a controversial $4 billion contract to build an oil refinery in western Uganda has walked away from the deal in unclear circumstances. PHOTO | FILE
Sources in the Energy Ministry confirmed on Thursday that the Russian consortium which had been selected to negotiate the principal agreements had “failed to negotiate in good faith” and had “failed to execute” a shareholders' agreement.
The refinery had been expected to commence production of 30,000 barrels per day in 2018, rising to 60,000 but those plans will now have to be re-examined.
Energy PS Kabagambe Kaliisa said “If RT Global choses to come back the door are still open, but we are now going to start negotiations with SK Group.” South Korea's SK Engineering was the alternate bidder.