Uganda reported in refinery talks with SK

The government of Uganda has resumed negotiations with SK Engineering & Construction, Seoul, for construction of a grassroots refinery after ending talks with a Russian company, according to press reports.

Uganda’s Ministry of Energy and Mineral Development last year selected a consortium led by RT-Global Resources, Moscow, for the main contract for construction of a 60,000 b/d refinery to be built in two phases near Lake Alberta. The project includes a 205-km products pipeline linking the refinery with a terminal near Kampala (OGJ Online, Feb. 17, 2015). RT-Global and SK were finalists in a long period of bid evaluation.

Construction of the country’s first refinery would allow development of discoveries of waxy crude oil in the Albertine basin.

The ministry was quoted as saying it ended talks with RT-Global (Rostek) after the company added demands to a deal reached in May.

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