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Uganda Seeks Transaction Advisor For Refinery

Uganda Seeks Transaction Advisor For Refinery

The Ugandan Government has received expressions of interests from companies bidding to be its Transaction Advisor for the development of an oil refinery. The government will send out invitations to tender or to participate to selected candidates on Monday 22nd October 2012.

When selected the Transaction Advisor shall advise Government on structuring the refinery project, developing a feasible project financing structure, planning and securing appropriate investment partners, development plans for the Refining Company including, but not limited to, preparation of the necessary legal documents for formation of the Refining Company and further detailed agreements and contracts with crude suppliers and petroleum products offtakers.

This is the first formal step that Uganda has taken on its own, to go forward with talks with upstream operators in the country to set up a refinery has stalled several times. But the Ugandan government has been keen on getting a refinery on ground from the get-go of crude oil production.

Tullow Oil, the country’s leading operator, has argued that construction of export pipeline is a more bankable project. The government disagrees. “One of the key findings from a feasibility study (conducted by Forser Wheeler) was that development of a refinery presented better benefits to the country compared to the crude export pipeline”, the government said in the invitation for expression of interest for the role of transaction advisor.

Government’s plan is to develop a 60,000 BOPD refinery that will later be expanded to 120,000 BOPD and then 180,000 BOPD. The strategy is to develop the 60,000 BOPD refinery in a modular manner starting with 20,000 BOPD delivered within 3 years. The Government of Uganda has received a grant from the Norwegian Ministry of Foreign Affairs to contract services of a Transaction Advisor.

The Transaction Advisory Services, which are estimated to last one year,  are expected to be provided by a firm with extensive experience with a minimum of 10 years’ experience in providing similar services. The company should include most important projects of similar type executed during the last 3years including their value, execution period and client. Detailed description of relevant projects executed by the company involving development/planning/evaluation of Transaction activities related to complex petroleum projects in general and particularly in Africa should also be included.

The project team is expected to provide the following key expertise for the assignment:

  1. Experience in oil supply & refining contracts and agreements e.g. Joint venture/cooperation/ participation agreements, Crude oil supply contracts, Oil logistics (supply, transportation, trading and storage)
  2. Project management experience/competence in oil and gas
  3. Legal expertise and experience from international oil and gas
  4. Experience in valuation, incorporation and setting up manufacturing companies
  5. Experience/competence in financing of large investment projects

The ideal consultants should be qualified in their respective fields with a minimum of graduate qualification and with not less than 10 years of experience in the oil and gas sector.

Joint proposals are acceptable, but one company must undertake responsibility as Main Consultant and the others as sub-Consultants to the Main Consultant.

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