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Oil refinery trouble for Uganda

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In that letter, Prisca Boonabantu, the undersecretary ministry of energy at the Energy Ministry writes to Mathew Heysel.P, the CEO, Burj Petroleum. She notes that Burj Petroleum was invited for a meet – ing at Amber House, Boardroom A118, BlockA, First Floor, on 23rd Sept. The Independent could not confirm whether the meeting took place.

The letter appears to be a response to another in which Burj Petroleum indicated it was ready to finance 100 percent of the refinery and own it 80 percent and give the 20 percent to government as carried interest.

An excerpt of the letter reads: “Our understanding is that Burj Petroleum and China Huarong Asset Management Co. Ltd are interested in forming a joint venture with government to build a 30,000 bpd crude oil refinery where you will pay 100 percent of the refinery cost and own 80 percent shares there in and government would own 20 percent carried interest. Would you make a consideration of the government and its partners owning up to 40 % share, where the 20 percent would be a carried interest and 20 percent is a cash call interest?”

Many Ugandans will recall that a company calling itself Eutaw Construction Company and masquerading as an American company of a similar name in 2013 offered to construct the Mukono-Katosi road using 100% its own money. However by 2014, the same company had twisted the contract and got the government to give it Shs24 billion for no work done.

In a similar development this time, the letter the government is already asking Burj Petroleum for advice about some technical aspects of the refinery.

“We also note that you proposed to construct a 30,000 bpd crude oil refinery,” the letter reads in part, “Do you have plans of expanding the said refinery in future? How complex would the 30,000 bpd refinery be, given our crude type and product market in Uganda and its immediate neighbours?”

The letter adds: “What forms of agreements do you envisage to enter into with the government of Uganda in order to realise such a transaction? Please also confirm that what you are proposing is a Greenfield refinery?”

These particular questions have raised eyebrows because the government has a policy or should have a policy on how the investment into the refinery should look like and what capacity it should be.

Indeed, in 2010, government spent a fortune and contracted UK’s Foster Wheeler to carry out a feasibility study for the oil refinery, which addressed the issues of cost, the type of crude oil and the regional market requirements.

Critics also question why government would ask an investor what sorts of agreements need to be signed for such a transaction given that it has its own lawyers and technical people with this expertise. In some social media circles the letter is being treated as an embarrassment to government.

At the back of all this is the issue of whether Burj Petroleum is what it claims to be and whether those that run it are who they claim to be.

Investigations by The Independent online and with contacts in other countries showed that there are two main characters who share the name Mathew Heysel. One of the Mathews, who writes his name as Matthew J. P. Heysel P. Eng is listed by Bloomberg as the Executive chairman of Big Sky Network Canada Ltd and Chairman of Chengdu Big Sky Technology Services Ltd, Big Sky Energy Corporation.

The other Mathew, writes his name as Mathew Heysel, and says he is an Engineer based in London. His Linkedin profile shows that he is also from Nigeria and there is not much else. But this Mathew is connected to a Nigerian who calls himself Henry Henry and who says he is the current Executive Director – Business Development & Strategic Investment, Burj Petroleum Corporation. He also states his address as United Arab Emirates.

But according to details on company check, an international website with details about company registration, Mathew and Henry Henry are shareholders in another company called Burj Petroleum Africa Limited. Other records show that this Mathew is also based in United Arab Emirates.

But as already noted, on his Linkedin, Henry Henry says he is the current Executive Director – Business Development & Strategic Investment, Burj Petroleum Corporation. The confusion surrounding these companies has raised eyebrows.

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