UNOC needs UGX 3 trillion for activities in oil sector

Kampala, Uganda | THE INDEPENDENT  | The Uganda National Oil Company- UNOC needs a total of USD 795 million (approximately 2.93 trillion) shillings to take part in upcoming oil and gas activities.

Angella Ambaho Kariisa, a communication officer at UNOC, notes that as Uganda draws closer to the Final Investment Decisions for several projects under the oil and gas sector, UNOC also needs to be with a strong financial muscle to enable its participation.

“UNOC needs USD 795 million for all its projects. Government, through Ministry of Finance, Planning and Economic Development, is looking at different options to secure this money and ensure that all UNOC investments take off as planned,” Kariisa said in an interview.

John Bosco Habumugisha, the General Manager of the National Pipeline Company, one of UNOC’s subsidiaries in- charge of midstream and downstream activities, notes that they have since tabled their investment plans to ensure finances are availed on time.

Habumugisha notes that some of the key planned activities include the development of where UNOC will be contributing over 40 percent of the investment funds in addition to the proposed industry park which will be developed in the same area.

He adds that other areas of investment will include the Kampala Oil Terminal which is expected to store the final products that will be produced from Kabaale and revamping the Jinja Oil Terminal which will be linked to port Florence- Kisumu in Kenya.

Besides the money required for investment, UNOC is said to be running on a ‘merger budget’ of 15.2 billion shillings. This is against the proposed shillings 102.3 billion leaving a funding gap of shillings 87.1 billion which according to the company is posing a challenge given the fact that the joint venture partners are fully funded thus missing out on key activities of the approved work programs.

According to the company’s budget performance report for the Financial Year 2018/2019, it was indicated that the Law which established the company ignored the long-term funding solution of the Company with the appropriations from parliament being inadequate to allow full execution of the Company’s mandate thus asking for an alternative capitalization solution.

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