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Parliament has approved a proposal authorising the Uganda National Oil Company (UNOC) to borrow up to USD 2 billion (UGX 7.12 trillion) from Vitol Bahrain E.C. (VBA), a global trader in crude oil and petroleum products supply and marketing. The financing marks a decisive shift toward non-traditional financing to unlock oil-linked and national infrastructure projects amid tightening global capital for fossil fuel investments. The proposal presented by the Ministry of Finance in its capacity as a shareholder in UNOC builds on an existing commercial relationship between UNOC and Vitol Bahrain. In August 2023, Government, through UNOC, entered into a Petroleum…
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From the time Uganda hit the first commercially viable oil finds at Mputa-1 well on 6th January 2006, the word on everyone’s lips has been “first oil”. Cabinet in 2008 passed the National Oil and Gas Policy (NOGP) 2008 which laid out a path for ensuring that Uganda’s oil and gas resources would be dedicated to poverty eradication and the creation of lasting value to society. This would be possible through “high standards of transparency and accountability in licensing, procurement, exploration, development and production operations as well as management of revenues from oil and gas.” Pursuant to the NOGP,…
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