Finance Minister Henry Musasizi has tasked the Uganda National Oil Company (UNOC) board to explore innovative and sustainable financing options to strengthen the company’s operations and reduce its reliance on government budgetary support.
Minister Musasizi, together with Amos Lugoloobi and Cissy Mulondo, made the call on Tuesday during an engagement with the UNOC board as the country moves closer to first oil production.
Minister Musasizi commended UNOC for maintaining a steady petroleum supply despite geopolitical tensions and conflicts affecting major oil-producing regions.
“Uganda has continued to have fuel available at relatively stable prices,” Mr Musasizi said, while questioning the wide variations in pump prices across the country.
He cited differences in fuel prices in Kabale, Masaka, Mbarara and Kampala, calling for an explanation of the factors behind the variations.
The minister’s call comes as UNOC reports progress in Uganda’s oil and gas projects, with the East African Crude Oil Pipeline (EACOP) standing at 89.4 per cent, Kingfisher at 79.36 per cent and Tilenga at 74.2 per cent by the end of June 2026.
As the country prepares for first oil, UNOC expects to meet about $72 million (about Shs270 billion) in cash-call obligations.
On petroleum supply, UNOC said its sole-importation arrangement had increased volumes by 39 per cent, with the company supplying 36 oil marketing companies.
Its gross margins also increased from Shs387 billion to Shs540 billion in the 2025/26 financial year.
Under a $2 billion financing facility secured from Vitol Bahrain, $150 million had been disbursed, while Shs536 billion had been transferred to the Ministry of Finance.
UNOC is also developing key petroleum infrastructure, including the 320-million-litre Kampala Storage Terminal and a 110-million-litre storage terminal in Mombasa, Kenya.
The company is also working towards establishing a 60,000-barrel-per-day refinery and developing Phase One infrastructure at Kabalega Industrial Park, where Shs37.96 billion has been secured.
UNOC has proposed a self-financing model as part of efforts to attain greater financial independence. The company says its sole-importation business generates about $3 million in monthly administrative charges.
However, UNOC maintains that continued government capitalisation remains critical to enabling it to expand its operations and unlock the economic potential of Uganda’s petroleum resources.
The engagement comes as government seeks to position UNOC as a financially sustainable national oil company capable of generating greater value from the country’s petroleum sector as Uganda approaches first oil.
