The Uganda National Oil Company (UNOC) has explained the difference in the diesel shipment that was meant for Uganda, stating that Ugandan Oil Marketing Companies (OMCs) had more local demand than had originally been agreed upon with Kenyan officials.
UNOC reports that the Supply Planning and Vessel Scheduling Committees oversee the importation of petroleum products through Kenya and hold monthly meetings to maximize pipeline system use. UNOC was given permission to import 65,000 MT of diesel (AGO) during a meeting on May 22, 2024, with delivery windows of July 2-4, 2024.
UNOC was permitted to discharge 80,000 Metric Tonnes of Diesel at the Mombasa Port on July 5, 2024, with 65,000MT going to Ugandan OMCs and the remaining 15,000MT to be used in August 2024, owing to increased demand from Ugandan OMCs.
The business stated, “The governments of Kenya and Uganda have agreed to give priority to the G-2-G transit portion, which will be delivered to Uganda by July 2024, and for UNOC to initially provide 65,000 Metric Tonnes to the Ugandan Oil Marketing Companies.”
The public was reassured by UNOC that it operates responsibly and is dedicated to guaranteeing the security of Uganda’s supply of petroleum products.
ENTIRE UNOC Declaration
EDUCATION RELATING TO MEDIA REPORTS ABOUT UNOC’S FIRST SHIPPING OF PETROLEUM PRODUCTS
KAMPALA, JULY 12, 2024, FRIDAY: Regarding the Uganda National Oil Company Limited’s (UNOC) first shipment of petroleum products that has prompted a bond charge from the Kenya Ports Authority, recent media reports have sparked worries and inquiries. Furthermore, it is alleged that UNOC underreported its shipment.
Therefore, UNOC would like to clarify the following impression that the false media stories created:
Under the direction of Kenya’s Ministry of Energy and Petroleum, the Supply Planning and Vessel Scheduling Committees oversee and coordinate the importation of petroleum products through Kenya.
The Committees meet monthly to schedule and plan the import of petroleum products through the Mombasa port in order to maximize the use of the limited capacity of the Kenyan pipeline system. This helps to guarantee that the region, when using the Kenyan route, is always well supplied, that vessel delays to discharge the imported products are limited, and that the Kenya pipeline system is not overflowing with product.
UNOC was assigned to import 65,000MT of diesel (AGO) to be received into the KPC system in Mombasa with a delivery window of July 2–4, 2024, during the Supply Planning meeting on May 22, 2024, held in Nairobi.
It was acknowledged during the talks between Kenya and Uganda that the UNOC’s delivery of the 80,000 Metric Tonnes (MT) would have an impact on the Government to Government arrangement that was originally planned to deliver a portion of the transit Diesel to Uganda. The cargo was supposed to arrive at the Mombasa port in June 2024, with planned loadings for delivery to Uganda starting in July 2024.
Through their respective Ministries of Energy, the governments of Kenya and Uganda subsequently came to an agreement that would allow UNOC to first provide 65,000 metric tons to Ugandan oil marketing companies, with the remaining 15,000 metric tons to be provided to them by August 2024. The G-2-G transit portion would be prioritized for delivery to Uganda by July 2024.
Contrary to what was previously agreed upon, on July 5, 2024, the cargo ship SINBAD, which was carrying 80,000 metric tons of diesel that was headed for Uganda, was permitted to empty completely at the Mombasa port; roughly 28,000 metric tons were discharged to the VTTI Terminal, and the remaining 52,000 metric tons were discharged to the KPC Terminals in Mombasa.
In order to meet the July demand, UNOC later informed the Ugandan Oil Marketing Companies that the previously allotted monthly demand of 80,000 Metric Tonnes would be divided, with them only receiving 65,000 MT from UNOC and a share from government-to-government distribution. This relates to the ships (M/T IXORA carrying 85,000MT of Diesel) that were supposed to arrive in July 2024 but leaked into June 2024 under the terms of the government-to-government supply arrangements.
