Uganda’s state-owned oil enterprise starts bulk trading of petroleum products

Workers are seen at an oil exploration site in Bulisa district approximately 244km (152 miles) North-West of Kampala January 20, 2012. REUTERS/Stringer

Uganda National Oil Company (UNOC) on Monday started bulk selling of petroleum products to local oil marketing companies in the east African country.

The state-owned enterprise said in a statement that the import and selling of petroleum products is the start of a long journey to position the company within the petroleum supply chain.

UNOC said the move will enhance the security of petroleum products supplies into Uganda.

The announcement came shortly after UNOC signed a memorandum of understanding to start supplying Stabex International a fraction of their monthly fuel requirements. Stabex is one of the oil marketing companies in Uganda.

Proscovia Nabbanja, chief executive officer of UNOC, said the trading is part of the company’s mandate of handling government’s commercial interests across the petroleum supply chain.

Nabbanja said bulk trading is one of UNOC’s downstream projects alongside petroleum products storage terminals and pipeline development.

UNOC currently manages and operates the 30 million liter capacity Jinja Storage Terminal in the eastern part of the country and has started a phased development of a 240 million liter capacity Kampala Storage Terminal located in the central region.