UNOC clears air on Mombasa oil import impasse

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.

As Uganda’s first direct oil import reached Mombasa, Kenyan authorities slapped a shs145bn port fee on the oil to the shock of everyone.

However, in a statement UNOC says 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.”

UNOC said at the supply planning meeting of May, 22, 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 July 2 and 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,” UNOC  explained.

UNOC  said subsequently, they  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.”