The Uganda National Oil Company (UNOC) has successfully secured a monumental $2 billion financing agreement with Vitol Bahrain E.C., following parliamentary approval. The deal, spread over seven years, aims to fund strategic national infrastructure projects and investments that are expected to reshape the country’s petroleum sector. This landmark financing marks a major milestone in Uganda’s journey toward becoming a regional energy hub.
Under the agreement, UNOC will channel the funds into critical projects across the petroleum value chain. Key initiatives include the construction of new storage facilities in Namwabula, Mpigi District, expansion of the petroleum terminal in Jinja, and extension of the pipeline from Kenya. The financing will also support refinery-related developments and the creation of vital logistics infrastructure, both nationally and regionally.
The infusion of capital is designed to enhance Uganda’s energy security and ensure a more reliable supply of petroleum products. By investing in robust infrastructure, the Government aims to reduce bottlenecks in fuel distribution and position Uganda as a competitive player in the East African energy market. This initiative aligns with the broader economic transformation agenda, which emphasizes efficiency and sustainable growth.
UNOC’s strengthened role in implementing government policy in the petroleum sector is a key outcome of this agreement. The company is expected to drive infrastructure development, oversee petroleum supply operations, and actively participate in commercial ventures across the oil and gas value chain. This positions UNOC as a central player in unlocking Uganda’s petroleum potential.
Beyond the immediate petroleum sector, the projects are expected to have far-reaching economic benefits. Improved logistics, expanded storage, and efficient transport systems will facilitate trade and attract further investment into Uganda. These developments are critical in supporting the country’s 10-fold growth strategy for sustainable economic development.
The Government has emphasized that all funds will be managed prudently and in strict accordance with existing laws and regulations. Oversight will be maintained by the relevant authorities to ensure transparency, accountability, and optimal utilization of the financing. This reassurance is aimed at strengthening public confidence in the management of strategic national resources.
Experts believe that the successful execution of these projects could transform Uganda into a regional energy hub, enhancing its influence and competitiveness in the East African market. By addressing current infrastructure gaps, the country is set to create a more resilient petroleum supply network capable of meeting growing domestic and regional demand.
The approval and signing of the financing agreements signal a decisive step forward for Uganda’s infrastructure and energy ambitions. As UNOC prepares to implement these transformative projects, the nation is poised for accelerated economic growth, improved energy security, and a strengthened position in the regional oil and gas industry.
