UNOC launches petroleum products bulk trading
The Uganda National Oil Company (UNOC) has launched its bulk trading of petroleum products business.
The company going forward, will import and sell petroleum products in bulk to registered local Oil Marketing Companies (OMCs), hence the term bulk trading. This is the start of a long journey expected to strategically position UNOC, with government support, within petroleum products supply chain. The move will enhance the security of petroleum products supplies in Uganda while delivering sustainable value propositions to the OMGs subsequently benefiting all Ugandans.
One of the leading local OMGs, Stabex International is the first UNOC customer. UNOC will import and sell to Stabex, a fraction of their monthly fuel requirements as per the agreed terms and conditions. The maiden order is to be delivered within March 2020.
UNOC is negotiating with strategic partners to enhance its customer value prepositions which will be presented to the OMGs as it strives to handle a favorable fraction of the fuel imports into Uganda.
The Minister of Energy and Mineral Development, Hon. Mary Goretti Kitutu presided over the signing of an MOU at Stabex premises in Nansana. She applauded UNOC for the move, comments which were re-echoed by the Board Chairman, Mr. Emmanuel Katongole.
The UNOC CEO, MS Proscovia Nabbanja said the move was in accordance with the mandate of handling the Government’s commercial interests across the petroleum value chain.
“Bulk trading was one of the UNOC’s downstream projects alongside petroleum products storage terminals and pipeline developments,” She added.
The Stabex International General Manager, Mr. Daniel Cherutich said they were glad to partner with UNOC on the bulk trading journey and happy to be the first customer. He indicated that UNOC’s strategic approach to implement its mandates and the shared long-term goals gave Stabex the confidence to sign up as first customer and that Stabex looks forward to mutual benefits for the two companies.