The proposed new refinery is expected to process about 30,000 barrels of oil a day, reported the Wall street Journal.
The government and the oil companies are also planning to construct three potential export pipelines.
Negotiations are underway on the country’s final oil-development plans, while both sides are expected to reach a final deal in the next few weeks, according to government officials.
The parties have not yet decided on the production targets for the project.
Uganda President Yoweri Museveni was quoted by the publication as saying the country has wasted seven years of time with issues related to oil production.
Uganda, which is expected to contain about 3.5 billion barrels of untapped oil reserves, will join sub-Saharan Africa’s Nigeria, Angola and Sudan as major crude producers in the area.
