A report by The East African revealed that Uganda National Oil Company (Unoc) secured contracts with the market’s largest fuel dealers, tying over 80 oil marketers in Uganda to the state-owned corporation for the long term.
The move follows the tripartite agreement signed by Uganda, Kenya, and Unoc governments at the State House in Nairobi. According to authorities, the first items could be available next month.
The SPAs define the relationship between Unoc as the supplier and the oil marketing companies (OMCs) as buyers of wholesale petroleum goods, clarifying their respective duties in the supply chain.
“The agreements with our clients, the OMCs have been completed and so what remains is delivering the vessel/products and the products hitting the fuel pumps,” Unoc’s Chief Legal Company Secretary Peter Muliisa, stated.
“With the signing, everything is now set. What remains now is to bring in the first vessel to start delivering the fuel. We expect the first ship under Unoc will be here in July,” Muliisa added.
As seen in the East African report, five firms, including Vivo Energy, Moil, Rock Global Oils, Petro City, and Nile Energy, signed partnerships with Unoc at the Kampala Serena Hotel, with more due on Wednesday.
Unoc is on track to establish itself as the industry leader as it expands its portfolio to include oil barges and boats, further solidifying its position as the only provider. This will enable Unoc to have an important part in the delivery of petroleum products into Uganda.
According to Mr. Muliisa, based on the industry’s downstream segment’s growth estimates, Unoc will need a new vessel each month to provide enough gasoline to fulfill the market’s demand, which is now seven million liters per day.
