Uganda is looking at Algeria as a potential investor in the oil refinery, President Yoweri Museveni has said.

“We are looking at Algeria investing in our refinery. We want to build an inland refinery. It is necessary because it will cut transport costs seeing that we are far away from the coast,” President Museveni said on Sunday (March 12) in a meeting with his host Abdelmadjid Tebboune at the Presidential Palace in Algiers.

President Museveni and his host discussed the need to fast-track economic integration in order to facilitate modern prosperity of Africans.

“In Algeria we have reliable partners. We are looking at powdered milk, which is already coming here, coffee, tea and then products from Algeria of petroleum and petrochemicals. We discussed issues on growing the prosperity of Africa; agreed to work together in the areas of trade, energy, education, agriculture and counter-terrorism where they have experience in this, just like us,” Museveni said in a tweet.

Key oil agreements

In February last year, Uganda and Tanzania signed a deal with Chinese and French oil companies finalising terms of a $10 billion drilling and pipeline project. 

The project's backers say it will usher in economic development across the region.

On January 24, 2023, President Museveni officially commissioned the start of a drilling campaign on the Kingfisher oilfield, which is part of a $10b scheme to develop the country’s oil reserves under Lake Albert.

Cabinet approved the signing of Production Sharing Agreements (PSAs) between Uganda and two oil companies, Uganda National Oil Company (UNOC) and Australian company DGR Energy Limited, to undertake exploration works under the second licensing round.

However, Cabinet also allowed UNOC to find a suitable joint venture partner or partners within the first exploration period, with whom they will carry out exploration works on Kasuruban oil block.