Uganda Delays Kabaale Refinery Project Again as FID Timeline Slips

Uganda's long-awaited Kabaale refinery project has suffered another setback as the country prepares to become a crude oil producer. The Petroleum Authority of Uganda (PAU) announced on August 5 that it is delaying the final investment decision (FID) for the refinery, pushing the project's definitive financial commitment beyond the expected start of commercial oil production.

This latest postponement fits into an already erratic timeline, with the FID timeline slipping repeatedly over the past year. The regulator did not specify the reasons for the delay, but trade press suggests that the progress of front-end engineering design (FEED) studies assigned to technology licensor UOP Honeywell may be a contributing factor.

The refinery project's history is marked by changes in lead investors, with an initial Russian group withdrawing and a Western consortium ultimately expiring without leading to a final investment decision. The current Emirati investor, Alpha MBM Investments LLC, entered negotiations in late 2023 and signed an implementation agreement in spring 2025, resulting in an ownership structure giving the company 60% of the refinery's capital and Uganda National Oil Company (UNOC) 40%.

The PAU cited logistical disruptions linked to the conflict in the Middle East as a reason for the delay in the East African Crude Oil Pipeline (EACOP), which represents Uganda's export route for crude to international markets. The project's governance is also undergoing transition, with the term of Ernest Rubondo, PAU executive director since 2016, set to expire in August.