Uganda National Oil Company (UNOC) has begun the process of finalizing sales and purchase agreements with 80 licensed oil marketing companies. This marks significant progress in the endeavor to supply bulk petroleum products throughout the country, with the initial deliveries anticipated to commence in July of this year.
UNOC made an official announcement regarding this pivotal step through their communication channels on June 4, 2024, affirming their commitment to fostering partnerships with key industry stakeholders.
The recent event held at Kampala Serena Hotel saw five prominent companies, namely Vivo Energy, Moil, Rock Global Oils, Petro City, and Nile Energy, formally sealing agreements with UNOC. Notably, more companies are expected to join this collaborative initiative in the near future.
This milestone follows closely on the heels of the tripartite agreement signed to facilitate the importation and transit of refined petroleum products from Kenya to Uganda. The ceremony, graced by President Yoweri Museveni and his Kenyan counterpart William Ruto on May 16, 2024, underscored the mutual commitment to bolstering regional energy cooperation.
The tripartite agreement empowers UNOC to directly import refined product commodities from various producers across different jurisdictions. This breakthrough is poised to alleviate longstanding challenges within Uganda’s petroleum sector, fostering improved efficiency and reliability in supply chains.
Furthermore, the signing of this agreement signifies a resolution to a protracted legal dispute between Uganda and Kenya. Uganda had filed a case in the East African Court of Justice, contesting Kenya’s prohibition of the Energy and Petroleum Regulatory Authority (EPRA) from granting a petroleum import license to UNOC.
Presently, Uganda relies heavily on imports for approximately 90% of its refined petroleum products, primarily channeled through the port of Mombasa in Kenya. The transportation of these products to Uganda is facilitated by a pipeline operated by the state-owned Kenyan Pipeline Company Limited.
