Dubai-based private investment office Alpha MBM Investments agreed to become the lead partner on Uganda’s USD 4 bn crude refinery project, acquiring a 60% stake in the project, Bloomberg reports, citing an emailed statement from the Ugandan presidency’s office. The refinery is set to produce 60k barrels of crude per day. The government will retain a 40% stake in the project.

What we know: Negotiations for the agreement began in January of last year. Uganda is set to commence commercial crude oil production in 2025, tapping into fields within the Albertine Rift Basin situated in the western part of the nation, in proximity to the border with the Democratic Republic of Congo. The Ugandan government manages the oil fields through the state-operated Uganda National Oil Company, in conjunction with China's CNOOC and France's TotalEnergies. The agreement comes after the collapse of talks with a US consortium, which included Baker Hughes, last year over the refinery due to its inability to secure financing in a timely manner.

What’s next? The Ugandan National Oil Company will ink several agreements ahead of reaching final investment decision (FID), including a crude suppliers agreement and shareholders’ agreement to set terms for the partnership.

Who is Alpha MBM Investments? The investment office is led by Dubai royal family member Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, with ventures in sectors ranging from tech and infrastructure to sustainable energy, according to its website.

ALSO- Uganda and the UAE signed five other agreements spanning aviation, tree planting, digital land management systems, logistics, and digital payment systems for government transactions, President Yoweri K Museveni said in an X post.

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