KAMPALA — The Uganda National Oil Company (UNOC) has clarified the discrepancy in diesel consignment destined for Uganda, citing higher local demand by Ugandan Oil Marketing Companies (OMCs) than initially agreed upon with Kenyan authorities.
According to UNOC, the importation of petroleum products through Kenya is managed by the Supply Planning and Vessel Scheduling Committees, which meet monthly to optimize the utilization of the Kenya pipeline system. At a meeting on May 22, 2024, UNOC was allocated 65,000MT of Diesel (AGO) for import, with a delivery date range of July 2-4, 2024.
However, due to higher demand from Ugandan OMCs, UNOC was allowed to discharge 80,000 Metric Tonnes of Diesel at the Mombasa Port on July 5, 2024, with 65,000MT allocated to Ugandan OMCs and the remaining 15,000MT to be availed in August 2024.
“The government of Uganda and the Government of Kenya reached an understanding to prioritize the G-2-G transit portion for delivery to Uganda within July 2024, and for UNOC to first avail 65,000 Metric Tonnes to the Ugandan Oil Marketing Companies,” the company explained.
UNOC assured the public that it conducts business prudently and is committed to ensuring the security of petroleum products supply into Uganda.
FULL UNOC Statement
CLARIFICATION ON MEDIA REPORTS REGARDING UNOC’S FIRST PETROLEUM PRODUCT SHIPMENT
KAMPALA, FRIDAY 12TH JULY 2024: Recent media reports have raised concerns and questions regarding the Uganda National Oil Company Limited’s (UNOC) first shipment of petroleum products that has attracted a bond fee from the Kenya Ports Authority. There are also claims that UNOC under-declared its shipment.
UNOC would therefore like to correct the impression created by the misleading media reports as follows;
The importation of petroleum products through Kenya is managed and coordinated by the Supply Planning and Vessel Scheduling Committees under the leadership of the Ministry of Energy and Petroleum of Kenya.
The Committees meet every month to plan for and schedule the petroleum products imports through the Mombasa port to optimize the utilization of the constrained capacity of the Kenya pipeline system to ensure that the region, using the Kenyan route, is always well supplied and that there is a limitation on delays of vessels to discharge the imported products and also that the Kenya pipeline system is not clogged with product.
At the Supply Planning meeting of 22nd May 2024 held in Nairobi, UNOC was allocated to import 65,000MT of Diesel (AGO) to be received into the KPC system in Mombasa with a delivery date range of 2nd to 4th July 2024.
During the engagements between Kenya and Uganda it was recognised that the delivery of the 80,000 Metric Tonnes (MT) by UNOC would affect the planned delivery of a portion of the transit Diesel to Uganda through the Government to Government arrangement as earlier scheduled for delivery to the Mombasa port within June 2024 with planned loadings for delivery to Uganda from July 2024.
The government of Uganda and the Government of Kenya, through the respective Ministries of Energy thereafter reached an understanding to allow for the G-2-G transit portion to be prioritized for delivery to Uganda within July 2024 and for UNOC to first avail to the Ugandan Oil Marketing Companies 65.000 Metric Tonnes and the rest of the 15,000MT to be availed to the Ugandan Oil Marketing Companies within August 2024.
It was against the above understanding that on 5th July 2024, the Cargo ship-SINBAD carrying 80,000 Metric Tonnes of Diesel destined for Uganda was allowed to fully discharge at the Mombasa Port: about 28,000 Metric Tonnes discharged to the VTTI Terminal and the rest (about 52,000 Metric Tonnes) to the KPC Terminals in Mombasa.
UNOC subsequently communicated to the Ugandan Oil Marketing Companies that the earlier allocated monthly demand of 80,000 Metric Tonnes will be split and they will only access from UNOC 65,000MT and a portion from the government to government delivery to meet the July demand. This is as per the vessels that had been planned under the Government to Government supply arrangements for June 2024 but spilled into carly July 2024 (M/T IXORA carrying 85,000MT of Diesel).
Going forward, the petroleum products importation and supply destined for Uganda shall be done by UNOC as per the Petroleum Supply Act, 2003, as amended in November 2023. The UNOC must import the entire demand for the country otherwise there will be a shortfall in supply.
We give our assurances to the Public that UNOC together with its partner Vitol Bahrain prudently conducts business and are committed to ensuring the security of the supply of petroleum products into Uganda.
For further inquiries, please contact:
Tony Otoa
Chief Corporate Affairs Officer
tony.otoa@unoc.co.ug
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