In a concerted effort to bolster economic ties, Uganda and a Bahrain-based subsidiary of the global energy trader Vitol have chosen Dar es Salaam Port as their destination for petroleum imports. This strategic decision follows Vitol's recent authorization to supply all petroleum products in Uganda, granted by the state-owned Uganda National Oil Company (UNOC).
Uganda's Minister for Energy and Mineral Development, Ruth Nankabirwa, disclosed the development, stating, "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." She further explained that this partnership aims to ensure a secure supply of petroleum products in both Uganda and Tanzania, with sufficient reserves in place to address any supply disruptions. Additionally, Vitol has committed to supporting the construction of additional capacity in collaboration with UNOC, involving a storage capacity of 320 million liters in the Namwambula area of Mpigi.
Nankabirwa also noted that the Ugandan cabinet has approved changes to the petroleum law to allow Vitol to exclusively supply UNOC, a move that further solidifies the partnership. The Ugandan government expressed its gratitude to the Tanzanian government, led by President Samia Suluhu Hassan, for their cooperation in the energy sector. This collaboration underscores the commitment of both nations to strengthen their ties in this vital industry.
Dar es Salaam Port was selected by Uganda due to its efficiency and well-established system for importing petroleum and gas. Vitol, a formidable partner with substantial revenues reaching USD 505 billion by 2022, is the first international independent trader to pledge its support for building UNOC's capacity in the petroleum industry. The partnership also involves assisting UNOC in acquiring the necessary capacity to transport petroleum products from the Ugandan refinery.
Under the framework of the 2003 fuel distribution law, updated in 2023, the Ugandan government entrusted UNOC with overseeing the importation and distribution of fuel to petrol station operators. This initiative plays a pivotal role in ensuring a stable and reliable oil supply for Uganda and the broader East African region.