Eighty licensed oil marketing organizations have signed sales and buy agreements with Uganda National Oil Company (UNOC).
UNOC reports that this is a significant step forward in the process of bringing bulk petroleum products into the nation; the first delivery is scheduled for July of this year.
On June 4, 2024, UNOC posted on X (previously Twitter) that “we have started the process of signing sales and purchase agreements with 80 licensed oil marketing companies.”
At the Kampala Serena Hotel, five businesses, including Vivo Energy, Moil, Rock Global Oils, Petro City, and Nile Energy, signed agreements with UNOC. Additional businesses are anticipated to follow suit.
This comes after a tripartite agreement was recently signed concerning the transit and import of refined petroleum products from Kenya to Uganda.
On May 16, 2024, the trilateral agreement was signed in the State House in Nairobi, Kenya, in the presence of President Yoweri Museveni and his Kenyan counterpart William Ruto.
Through the deal, UNOC will be able to purchase refined products directly from manufacturers located in several jurisdictions. This innovation should help Uganda’s petroleum industry overcome its obstacles and improve efficiency and dependability.
With the agreement’s signature, Uganda will be able to conclude a legal battle in which it sued Kenya in the East African Court of Justice, requesting a ruling that Kenya’s decision to forbid the Energy and Petroleum Regulatory Authority (EPRA) from granting Uganda National Oil Company (UNOC) a petroleum import license was unlawful.
Currently, the port of Mombasa in Kenya is the entry point for 90% of Uganda’s imports of refined petroleum products, which are shipped to Uganda via a pipeline run by the government-owned Kenyan Pipeline Company Limited.
