At a Glance
- Vitol Bahrain provides $2 billion to strengthen Uganda’s oil logistics and storage.
- New refinery and pipeline projects aim to secure first oil production.
- UNOC enhances capacity to manage nationwide petroleum supply efficiently.
Uganda has secured a $2 billion financing agreement with Vitol Bahrain to upgrade its oil infrastructure, including pipelines, refineries, and storage facilities.
The deal, executed through the state-owned Uganda National Oil Company (UNOC), aims to enhance energy security, reduce fuel import costs, and establish the country as a regional petroleum hub.
Uganda oil infrastructure projects 2025
The financing will support the construction of a new fuel storage facility in Mpigi District, expansion of the Jinja petroleum terminal, and upgrades to key pipelines connecting Uganda with Kenya.
Plans also include developing new refinery infrastructure, enabling the country to process more crude domestically and reduce reliance on imported refined fuel.
UNOC, established to manage Uganda’s petroleum resources, will leverage the funding to handle downstream distribution and storage more efficiently.
Officials describe the agreement as a strategic move to improve industrial competitiveness, lower transportation costs, and support the agriculture and manufacturing sectors that rely heavily on fuel.
Vitol Bahrain funds storage, refinery, and pipeline upgrades nationwide
The deal also underscores Uganda’s growing use of structured commodity finance as the country prepares for its first oil production from Lake Albert.
With upstream projects remaining capital-intensive, securing downstream infrastructure early mitigates supply risks and positions Uganda to control the energy value chain effectively.
Parliamentary approval has been secured, with full compliance oversight to ensure transparency and adherence to national laws.
Government officials frame the $2 billion commitment as more than financing, it’s a statement of intent: control the pipelines, terminals, and refineries, and the country controls its energy future.
