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The Ugandan government and Vitol Bahrain E.C., a Bahrain-based company, have chosen the port of Dar es Salaam to import oil, as part of efforts to promote economic relations between Tanzania and Uganda. The decision was made a few days after Vitol Bahrain E.C. secured a permit from the Uganda National Oil Company (UNOC) to supply oil to Uganda
The Ugandan government and Vitol Bahrain E.C., a Bahrain-based company, have chosen the port of Dar es Salaam to import oil, as part of efforts to promote economic relations between Tanzania and Uganda. The decision was made a few days after Vitol Bahrain E.C. secured a permit from the Uganda National Oil Company (UNOC) to supply oil to Uganda.
According to Ugandan Energy and Mineral Development Minister Dr Ruth Nankabirwa Ssentamu, UNOC and Vitol Bahrain E.C. have negotiated a five-year contract. Uganda, which currently imports 90 percent of fuel requirements through Kenya, argues that Kenya dropped a transparent and price-competitive open tendering system for the Gulf deal without consultation. Uganda was upset that it was kept in the dark about the negotiations around the government-to-government fuel deal between Kenya and two Gulf nations.
At meetings held last week, representatives of Uganda’s Ministry of Energy, the Uganda National Oil Company (Unoc), and Kenya oil marketers observed that the decision by Kenya to enter into the Gulf deal had left Uganda’s supplies vulnerable and exposed its citizens to expensive pump prices. The partnership will be financed by Vitol Bahrain E.C., which will provide a working capital facility backed by its global balance sheet and work with UNOC to ensure competitive pricing of petroleum products.
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Vitol Bahrain E.C. has also committed to financing the construction of additional capacity in partnership with UNOC, adding 320 million liters of storage capacity at Namwambula, Mpigi. Dr Nankabirwa described Vitol Bahrain E.C. as a strong partner with a turnover of US$505 billion in 2022) and an independent global trader with a strong regional presence. She also said the company is committed to building the capacity of UNOC.
