The company is to import and sell petroleum products to downstream operators in the country
The Uganda National Oil Company Limited (UNOC) has launched its bulk trading of petroleum products business. Bulk trading simply means that Uganda National Oil Company Limited will import and sell petroleum products in bulk to registered local oil marketing companies in Uganda.
According to a statement from UNOC, the move is the start of a long journey expected to strategically position the company, with Government's support, within the petroleum products supply chain. The move will enhance the security of petroleum products supplies into Uganda while delivering sustainable value propositions to the local oil marketing companies.
One of the leading local oil marketing companies, Stabex International is the first UNOC customer. UNOC will import and sell to STABEX, a fraction of their monthly fuel requirements as per the agreed terms and conditions. The maiden first order is to be delivered within March 2020.
UNOC is negotiating with strategic partners to enhance its customer value propositions which will be presented to the Oil Marketing Companies (OMCs) as it strives to handle a favorable fraction of the fuel imports into Uganda.
Mary Goretti Kitutu, the Minister of Energy and Mineral Development, presided over the signing of an MOU at Stabex premises in Nansana, a Kampala suburb. Kitutu applauded UNOC for the move.
"I urge UNOC to ensure consistency and timely delivery of quality petroleum products and excellence as they embark on this journey. Profits are dependent on happy clients," She said.
According to Kitutu, Uganda currently consumes about 6 million litres of petroleum products per day. "This demand has been growing at an average rate of 9 percent in 6-10 years. This market continues to grow. It is, therefore, important that UNOC strategically positions itself to participate in this growing market," Kitutu said.
Proscovia Nabbanja, the Chief Executive Officer (CEO) of UNOC, said the move was in accordance with the mandate of handling the Government's commercial interests across the petroleum value chain.
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 mandate 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.