The Ugandan government has hired U.S.-based investment firm Taylor-DeJongh to advise it on plans to build a $2bn oil refinery in the country, a spokesman announced. Taylor-DeJongh, an independent investment banking firm that gives advice in the power industry, will advise on the selection of a lead investor for the refinery, sourcing for financing and formation of a refining company, according to Petroleum Production and Exploration department Deputy Commissioner Robert Kasande.
"Now that we have selected a transaction advisor, the next stage will be calling for bids," he told reporters. The process will also depend on presidential assent to Uganda's second oil bill, which helps establish a new regulatory framework for its nascent oil sector and paves the way for the construction of a refinery.
The state is expected to retain a 40% stake in any project. Uganda's Government wants to develop a refinery in a phased manner, starting with a processing capacity of around 30,000 bpd within within three years, before ramping up to 60,000 bpd by 2019 and eventually up to 150,000 bpd.
Tullow Oil, Total SA, and China's Cnooc say they would prefer a smaller refinery and have insisted on a crude export pipeline to transport oil to overseas markets.
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