Russia has set new terms for its involvement in building Uganda’s $4b oil refinery in Hoima, western Uganda, a project it abandoned in June 2016, All Africa informed.

The Ugandan refinery had been estimated to begin initial production of 30,000b/d in 2018, and later increase to 60,000, but the plans will now have to be reviewed.  According to the new Russian Envoy, Alexander Dmitrievich Polyakov, it is expensive to construct a big refinery that needs high technology, Ecofin Agency reported.

Polyakov said: “The situation is now different. We have Russian potential investors in Uganda’s oil refinery. What we are suggesting is not a huge refinery with a capacity of 60,000 b/d,but a more compact, ready, visible solution.” He added that a refinery with capacity of between 7,000 and 8,000b/d can be constructed within a short period of seven to eight months.

Negotiations between Uganda’s government technocrats and a Russian consortium, RT Global, started in March 2015. However, sources privy to the deal said , the negotiations dragged-on over haggling on several agreements namely; Project Framework Agreement, Shareholders’ Agreement, Implementation Agreement and the Escrow Agreement.