Uganda National Oil Company (UNOC) has finalized agreements with major oil marketers in response to potential threats to its fuel supply monopoly.
The Sales and Purchase Agreements (SPAs) were signed on Tuesday, outlining the roles and responsibilities of each party within the supply chain.
A report by The East African revealed that UNOC has secured long-term contracts with over 80 oil marketers in Uganda, establishing ties with the market’s largest fuel dealers.
This move follows a tripartite agreement signed by Uganda, Kenya, and UNOC governments at the State House in Nairobi. Authorities anticipate the availability of the first items as early as next month.
The SPAs delineate UNOC’s role as the supplier and the oil marketing companies (OMCs) as buyers of wholesale petroleum products, clarifying their respective obligations in the supply chain.
UNOC’s Chief Legal Company Secretary, Peter Muliisa, confirmed the completion of agreements with the OMCs, emphasizing that the next step is the delivery of the vessel/products.
“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 stated.
As reported by The East African, 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 expected to follow.
UNOC is poised to consolidate its position as the industry leader by expanding its portfolio to include oil barges and boats, further solidifying its status as the sole provider. This strategic move will enable UNOC to play a crucial role in delivering petroleum products into Uganda.
According to Mr. Muliisa, considering the growth projections of the industry’s downstream segment, UNOC will require a new vessel each month to meet the market’s demand, which currently stands at seven million liters per day.
