The Uganda National Oil Company (UNOC) has taken action to address public concerns regarding the first shipment of fuel. This follows accusations of understating the value of the shipment and failing to pay the bond charge.
Recent media reports have highlighted concerns and inquiries about the first petroleum product shipment by UNOC, resulting in a bond charge from the Kenya Ports Authority. Additionally, there are allegations that UNOC did not fully declare its shipment. In response to these reports, Mr Tony Otoa, Chief Corporate Affairs Officer of UNOC, provided important clarifications.
In the statement issued on Friday, Otoa explained that the importation of petroleum products through Kenya is managed and coordinated by the Supply Planning and Vessel Scheduling Committees, led by Kenya’s Ministry of Energy and Petroleum. These committees meet monthly to plan and schedule petroleum product imports through the Mombasa port, aiming to optimize the use of the limited capacity of the Kenya pipeline system. This process ensures the region remains well supplied, minimizes vessel discharge delays, and prevents clogging in the pipeline system.
“At the Supply Planning meeting held in Nairobi on 22nd May 2024, UNOC was allocated 65,000 metric tonnes (MT) of diesel (AGO) to be received into the Kenya Pipeline Company (KPC) system in Mombasa, with a delivery date range from 2nd to 4th July 2024…” reads the statement.
The statement revealed that during discussions between Kenya and Uganda, it was recognized that UNOC’s delivery of 80,000 MT would impact the planned delivery of a portion of transit diesel to Uganda through a government-to-government (G-2-G) arrangement, previously scheduled for delivery to Mombasa in June 2024 with loadings planned for July 2024. Consequently, the governments of Uganda and Kenya reached an understanding to prioritize the G-2-G transit portion for delivery to Uganda in July 2024. UNOC was to provide 65,000 MT to Ugandan Oil Marketing Companies initially, with the remaining 15,000 MT to be delivered in August 2024.
On 5th July 2024, the cargo ship SINBAD, carrying 80,000 MT of diesel destined for Uganda, was allowed to fully discharge at Mombasa Port. Approximately 28,000 MT were discharged to the VTTI Terminal, while the remaining 52,000 MT were discharged to the KPC Terminals in Mombasa.
“UNOC communicated to the Ugandan Oil Marketing Companies that the previously allocated monthly demand of 80,000 MT would be split. They would receive 65,000 MT from UNOC, supplemented by a portion from the government-to-government delivery to meet July’s demand. This was in line with the vessels planned under the G-2-G supply arrangements for June 2024, which spilt into early July 2024 with the arrival of M/T IXORA carrying 85,000 MT of diesel..” adds the statement.
In the statement, Mr. OToa assured the country that looking ahead, UNOC will handle the importation and supply of petroleum products destined for Uganda as per the Petroleum Supply Act, 2003, as amended in November 2023. UNOC must import the entire demand for the country to avoid any supply shortfall.
Otoa reassured the public that UNOC, in partnership with Vitol Bahrain, conducts business prudently and is committed to ensuring the security of petroleum product supply into Uganda.
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