Summary:
- UNOC secures license from Kenya to import petroleum via Mombasa port in June 2024, resolving previous standoff. Plans to reduce pump prices with new import arrangements and storage terminal. New board, led by Mathias Katamba, aims for efficient operations.
KAMPALA, (Examiner) – The Uganda National Oil Company (UNOC) is set to receive its inaugural shipment of petroleum products via the Mombasa port in June 2024 following the acquisition of a license from Kenya’s Energy and Petroleum Regulatory Authority (EPRA).
Last month, Kenya granted UNOC the authority to import petroleum products through the Mombasa port, resolving a deadlock that had involved the leaders of both nations. During this impasse, Uganda had also explored alternative routes through Tanzania.
Dr. Ruth Nankabirwa, the Minister of Energy, attributed the delay in obtaining the license to a setback in UNOC’s plans. “Although we secured the license this month, it came too late for the April shipment. Consequently, we will now proceed to place an order for June,” she stated during the swearing-in ceremony of new UNOC Board members on Tuesday.
Under the new arrangement, UNOC will collaborate with partners to expedite the reduction of pump prices.
While historically Uganda has imported 90 percent of its refined petroleum products via the Mombasa port, the handling has been managed by oil marketing companies in Kenya through the Kenya Open Tender System. However, Uganda has recently shifted policy, empowering UNOC as the exclusive importer and supplier of all petroleum products.
UNOC is slated to procure petroleum imports from Vitol Bahrain, with the government also planning to construct a storage terminal in Namwabula, Mpigi District to ensure market stability and manageable pump prices.
Mathias Katamba, the new UNOC chairman succeeding Emmanuel Katongole, pledged concerted efforts with partners to promptly lower pump prices.
The newly constituted seven-member board includes six non-executive directors: Eng Herbert Mugizi, Ms Justine Isenyi, Dr Ivan Lule, Mr Moses Kabanda, Dr Simon Echegu, and Ms Zulaika M. Kasajja.
