ENI to build oil refinery in Uganda
Italy is to build an oil refinery plant in Uganda, foreign minister Franco Frattini has revealed. Frattini, who was
in the country, said the Italian government was committed to supporting ENI, an Italian energy giant, to build the
oil refinery.
ENI is scheduled to buy some of the largest oil wells in Blocks 1 and 3A in the Albertine region from Heritage Oil.
Under the transaction, ENI is to pay $ 1.35 bn in cash and a further differed contingent of $ 150 mm.
The deal is, however, subject to approval by Uganda. The Irish company, Tullow oil, which co-owns the oil wells, also
has the first option to buy the shares under its agreement with Heritage. ENI says it has the capacity to undertake
the entire petroleum value chain, from exploration, refining to marketing.
Frattini, who is on a tour of selected African countries, met with President Yoweri Museveni at State House. Uganda
was his second stopover after Kenya. He also visited Ethiopia and Mauritania.
He said Museveni had briefed him about a plan to turn Uganda "from aid to trade".
"Italy is already thinking about important investments in Uganda," he said. "We have earmarked some billions of
dollars for huge investments in Uganda. But we have more interest in ENI, which is ready to invest heavily in
Uganda."
Twenty-seven wells have been drilled in the Albert Basin since the beginning of 2006, 26 of which have oil deposits.
