Uganda state oil firm begins selling fuel to Tanzania after Kenya fallout
Uganda National Oil Company (Unoc) has started selling petroleum products to oil marketing firms in Tanzania and Uganda as it tests the market ahead of rolling out a direct import deal with Vitol Bahrain.
Officials of oil companies who spoke to this publication say that Unoc has offered products to their subsidiaries in the two countries in small quantities.
Unoc is set to start directly importing from Vitol Bahrain under a five-year deal, as Uganda moves to end decades of relying on Kenyan oil marketing companies (OMCs) for supply of fuel.
Uganda and Kenya fell out after Nairobi inked a government-backed deal to import fuel on credit from three Gulf oil majors. Kampala says middlemen in the deal have led to high pump prices.
“Unoc is currently offering products for sale to OMCs in Tanzania and Uganda. This is fuel supplied by Vitol Group. They (Unoc) have offered the product to our subsidiary companies in Tanzania and Uganda,” an official at one of the OMCs told this publication.
Unoc has over the years been primarily supplying fuel to State-owned entities in Uganda but is now set to start selling to private OMCs.
“They (Unoc) are selling products in what we see as market testing before they scale it up as part of the supply deal with Vitol Bahrain,” an executive of another oil marketer said.
Vitol is a Switzerland-based Dutch oil multinational. It partly owns the Fujairah Refinery in the United Arab Emirates (UAE).
Uganda kicked off plans for the deal months after Kenya announced an agreement with the Gulf majors to import fuel on a 180-day credit period to ease dollar demand and prop up the shilling.
Kenya started the government-backed deal with Saudi Aramco, Abu Dhabi National Oil Corporation and Emirates National Oil Company in April last year. The deal was set to expire at the end of last year but was extended to December 2024.
Uganda imports an average of 2.5 billion litres of petroleum annually valued at $2 billion (Ksh265 billion), with Kenya Pipeline Company (KPC) handling at least 90 percent of the cargoes.
Besides hitting local OMCs, the Unoc deal with Vitol Bahrain will also significantly hurt KPC’s revenues from transit fuel.
Transit fuel provides at least 40 percent of the dollars that Kenya needs to pay for fuel imports under the government-to-government deal. This is because transit fuel is paid for using dollars.
Unoc had targeted to make the first imports under the deal between January 10-12 this year but missed the target after it failed to get a licence from Kenya.
The licence from the Energy and Petroleum Regulatory Authority (Epra) is key to helping Unoc access the storage and transport network of KPC from the port of Mombasa to Kisumu.
Epra declined to issue the licence on grounds that Unoc has failed to comply with the law. Epra cited Unoc’s failure to show proof of owning a licensed petroleum depot and at least five retail stations in Kenya.
Shows
See AllAM Live
AM Live is NTV's morning current affairs show that sets the agenda for the day with insightful panels every weekday.
Business Redefined
Business Redefined is Kenya’s premier thought leadership platform for unpacking matters regarding economic and finance policy as well demystifying complex developments in the region’s capital markets.
Comedies
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Documentaries
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Entertainment
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Full Episodes
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Gumzo La Sato
Gumzo La Sato is a live social issues show that aims to create awareness about issues affecting the larger society. The discussions range from Parenting, Marital bliss and struggles, Oppression, violence, and all matters of the Heart.
Health Diary
Health Diary is a weekly show that highlights different types of diseases/conditions and seeks ways to prevent, treat/manage them. The show debunks this through real life stories and also feature specialists in different fields, to offer medical advice on the same.
Letter To My Younger Self
Letter To My Younger Self is a podcast where guests get to write a letter to their younger self, from which Maxine formulates questions to ask them during the hour-long show.
Nation Reports
Nation Reports is a weekly podcast offers an opportunity for listeners to interact with various reporters and journey with them as they unravel the biggest most emotive stories.
One Health Lens Podcast
Discussing health matters and human stories from Kenya and across Africa. We talk big picture from people to policy, ecosystems, and everything in between. Follow us on LinkedIn: https://www.linkedin.com/company/onehealthlens
Paradise Lost
Paradise Lost peeks through the story of Louis Otieno, the times, and everything in between.
Primetime
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Speaking of GEN Z
Speaking of Gen Z brings you entertaining but meaningful conversations about a generation that is trying to navigate through adulthood. Join hosts Michelle, Jackie and Esther as they unravel all things Gen Z.
Sport On
Sport-On is a 30-minute sports magazine show on NTV and 3 hours on NATION FM. The show seeks to give the sports “fanatics” and “funatics” comprehensive and in-depth coverage of sports both locally and internationally.
Tech-over
The extent of technological growth is beyond mere acknowledgment; it has seamlessly integrated into our daily existence. A few years ago, the notion of paying electricity bills through mobile money or recharging with 'tokens' in Kenya seemed inconceivable. Online product sales were considered distant, and artificial intelligence is rapidly reshaping various facets of our lives. Amidst these technological leaps, those with a solid understanding of tech can navigate challenges, seize opportunities, and build a sustainable livelihood. Tech over Show aims to be the platform facilitating discussions among thought leaders, innovators, tech companies, and the government, addressing challenges and opportunities in Kenya's thriving tech industry.
Thamani
Thamani is a business show which is dedicated to emerging issues regarding micro, small and medium size businesses.
The Politalk podcast
This is The Politalk podcast. Here we look into the ins and outs of everything Kenyan politics. We pull no punches and have no reason to sugarcoat anything that matters to Kenyans.
The Trend
A two-hour-long live show that airs on Fridays. The show focuses on what is current in the entertainment industry, controversial and popular across all media platforms targeting those aged between 25 and 35 years.
The trend podcast
The trend podcast highlights and captures the best of banter from #TTTT segment that airs every Friday on NTV. It's the TTTT EXTRA
The Wicked Edition
The Wicked Edition with Dr. King’ori seeks to address serious issues through humour and relatable wit. It is a two-part half hour show filmed in front of a live audience
Trending
A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula
Twende
Twende is a travel show that highlights beautiful, unique, diverse locations, people, and cultures. The show offers fresh perspectives on familiar locations and memorable experiences in new ones.
Unscripted
This Saturday evening lifestyle show lets viewers share their stories and life experiences as openly & honestly for the purpose of shifting the culture of silence.
VIP Access
VIP ACCESS is Anyiko Owoko’s YouTube and podcast show on Music and Culture dedicated to promoting Africa’s most promising talent and creatives. This podcast grants you VIP access into timeless interviews while providing a platform for rising as well as established artists across the continent. Since launching in 2018, Anyiko has interviewed over 70 African music stars.
WADR
This weekly news show aims to have all sides of debate but not be constrained by it, listen to main voices in the contest but not allow them to hold the viewers hostage, entertain debate but allow push back with all due respect.
When death do us part
In this podcast, three widowers openly speak about the process of grief, how they found themselves exposed to the emotional turmoil of losing their wives, and how society still does not know how to deal with them.
Your World
Your World is a health, wellness and variety show. It provides a platform for audiences and experts to share their experiences on how to improve or manage health issues, across Kenya and the Africa region.