IN an endeavour to strengthen economic ties, Uganda and a Bahraini unit of global energy trader Vitol have picked the Dar es Salaam Port for petroleum importation.
The decision comes a few days after Vitol got authorisation to supply all petroleum products in Uganda given by state-owned Uganda National Oil Company (UNOC).
“UNOC and Vitol Bahrain E.C. have negotiated a five-year contract and the partner (Vitol) will be financing the business by providing working capital,” Uganda’s Minister for Energy and Mineral Development, Ruth Nankabirwa said recently.
She added, “To ensure the security of supply, this partnership ensures that there will be sufficient reserves in Uganda and Tanzania that will be used if there is a disruption of supply in the country.
The partner has also promised to support the costs of building additional capacity in collaboration with UNOC of 320 litres in the Namwambula area, Mpigi,”
She said the cabinet has approved changes to the petroleum law that will allow Vitol to exclusively supply the state-owned Uganda National Oil Company (UNOC).
The government of Uganda extended appreciation to the Tanzanian government, led by President Samia Suluhu Hassan, in a special message delivered last Sunday in Dar es Salaam, promising more collaboration in the energy industry.
Uganda has picked Dar es Salaam port because of its efficiency and having in place a good system for importing petroleum and gas.
Vitol is a strong partner (with revenues of 505 billion US dollars by 2022) and the first international independent trader who has pledged to build UNOC’s capacity in this business where he will also help it build the necessary capacity to take petroleum products from the Ugandan refinery.
As part of the execution of the 2003 fuel distribution law, which was updated in 2023, the Ugandan government opted to charge UNOC with supervising the importation and distribution of fuel to petrol station operators.
This stage is contingent on the supply of oil in Uganda and the East African area in general.