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UNOC starts trading in petroleum products

A fuel tanker at the launch today of bulk petroleum imports by UNOC. courtesy photo

Kampala, Uganda | THE INDEPENDENT | The Uganda National Oil Company Limited (UNOC) has today launched its petroleum products business.

UNOC will import and sell petroleum products in bulk to registered local oil marketing companies, a move that will position UNOC, with Government support, within the petroleum products supply chain.

According to UNOC, the move will enhance the security of petroleum products supplies into Uganda while delivering sustainable value to the local oil marketing companies (OMCs) for the benefit of Ugandans.

The Minister of Energy and Mineral Developmen Mary Goretti Kitutu presided over the signing of an MOU with STABEX International  at Stabex premises in Nansana.

UNOC will import and sell to STABEX, a fraction of their monthly fuel requirements as per the agreed terms and conditions. The maiden order is to be delivered within March 2020.

The UNOC CEO  Proscovia Nabbanja said the move was in accordance with the mandate of handling the Government’s commercial interests across the petroleum value chain.

Minister Mary Goretti Kitutu (middle) flagged off the first consignment at Stabex premises in Nansana.

Bulk trading, she stressed, was one of the UNOC’s downstream projects alongside petroleum products storage terminals and pipeline developments.

The STABEX General Manager,Daniel Cherutich said they were glad to partner with UNOC on the bulk trading journey and happy to be the first customer.

He indicated that UNOC’s strategic approach to implement its mandates and the shared long-term goals gave STABEX the confidence to sign up as the first customer and that STABEX looks forward to mutual benefits for the two companies.

“UNOC is negotiating with strategic partners to enhance its customer value prepositions which will be presented to the OMCs as it strives to handle a favorable fraction of the fuel imports into Uganda,”  Board Chairman Emmanuel Katongole said.

UNOC was incorporated under the Companies’ Act of 2012 as a limited liability company wholly owned by the Government of Uganda.

Its overall function is to handle the Government of Uganda’s commercial interests in the petroleum sector and to ensure that the resource is exploited in a sustainable manner.

Until Uganda gets to tap its own resources, all fuel consumed in Uganda is imported via Kenya. UNOC is entering this sector to ensure steady supply to the Ugandan market.

 

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